Feed determines the production of extra liters of milk

Dairy farmers have become a little more cautious. Towards the end of January, this is so far the only effect that the phosphate rights decision has had on the feed trade. Phosphate production must still be reduced by an average of 2018% in 7. That percentage can only be achieved by reducing the livestock population.

Forced question
This has an impact on the silage maize trade. Although there is gradually more forced demand, for example due to a slot silo that is starting to become empty, demand is much calmer than a year earlier. The price is set at €56 per tonne, free of charge. High quality can also yield a premium.

The calm in the silage maize trade is not only dictated by the uncertainty surrounding phosphate, but also by the stocks on the silage plate. This is also evident from the orders for corn seed, which lag behind other years. Jos Groot Koerkamp (Limagrain) estimates that the corn area will remain stable, but he does not rule out a decline. "The roughage position is high."

Due to the large yields from the 2017 harvest, the focus is on using our own feed. It means a strong demand for structural products to compensate for the rapid dent. For example, wheat straw has a solid bottom line of €135 per tonne free at farm (for uncut product). Barley records an equal price. The higher prices also free up more supply for arable farmers.

Rapeseed straw is even more sought after than wheat straw. The product is scarce and therefore expensive, but that does not stop demand. Rapeseed straw costs an average of €175 per tonne, free of charge.

Contrasts in hay
The hay market remains a market of contradictions. For example, perennial ryegrass is doing better than last year, but the trade (€135 per tonne, free of charge) is not yet booming. The scarce Red Fescue ends up at €160 per tonne free of charge, while Tall Fescue is €10 cheaper.

Meadow hay remains a difficult product. While one person indicates that livestock farmers have enough stock, another speaks of lively demand. The price is on average €175 per tonne, but more and more outliers are rising.

Feed potatoes, just like structured products, remain in demand. The price is €25 per tonne free at the farm. Potato fibers also find their way smoothly. The spent grain market is calmer, due to the strong pricing. The price for this is somewhat under pressure.

Make optimal use of feed
It looks like dairy farmers are trying to make optimal use of the feed. In many places this is also decisive in the policy surrounding the balance between rights and livestock. If there is sufficient feed, the choice is made to produce extra liters of milk, otherwise the choice is to pre-sort the rights.