Inside: Feed market

Not only straw is getting more expensive

25 April 2018 - Herma van den Pol

Straw prices are rising again, while prices are already remarkably high. Whether the price will break the record of 2012 (€185 per tonne) is still uncertain. However, further increases are not excluded. It is not the only feed component that is becoming more expensive.

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The hunger for straw remains large and this is reflected in the prices; partly because only Spain still has sufficient stock. There is only a limited supply of straw from France and this has an impact on the price. On average, this remains at €160 per tonne of wheat straw; this conceals an upper limit of €165 per tonne, free of charge. It is a prize that has not been seen for a very long time.

165

euro

per ton for wheat straw

Barley straw quotes the same price as wheat, although the high peaks (seen in wheat) do not occur in barley. Another difference is that the barley harvest comes almost 1 month earlier than the wheat harvest. The barley harvest usually takes place in June, which makes the connection slightly better. The wheat harvest will not take place until later and there is currently still a lot of uncertainty about the time of that harvest. This will ultimately determine whether the price of straw still has much room to increase.

Pasture hay is getting tight
Not only is straw starting to become scarcer, but the supply of hay is also decreasing; under the influence of demand from horse owners. The price of meadow hay in particular is increasing every week, while supply is becoming increasingly tight. On average, the price is €185 per tonne, free of charge. At the top end the price is €200 per tonne, free of charge. Engels Raai has a more modest price increase and amounts to €140 per tonne, free of charge.

The increases in structural products are not good news for feed prices, but prices for wheat and grain maize are also rising. These are now again above the level of 1 year earlier. It has consequences for the prices of decomposed wheat and cornmeal, both of which are becoming more expensive. These are products that are widely used to supplement the grass ration. The last product, the price of which is cautious which increases, is spent grain. That price works out to €2,40 per percent dry matter.

More trade in silage
A product for which the price remained at €1 per percent dry matter, but in which more trade is taking place, is silage grass. Many dairy farmers in the north of the country are trying to make room for the first cut of grass, something that is now fast approaching. As a result, the price of silage grass has a wide spread, but the average remains unchanged. 

There is less life in the silage maize trade. More transactions are being cautiously reported and an increase appears to be in sight. This is also reflected in the average price, which remains at €55 per tonne, free of charge. It contrasts sharply with the flow of feed potatoes to dairy farming. That price works out to €25 to €30 per tonne, free of charge.

On balance, most players report that there are fewer livestock around, which is reflected in the demand for feed. At the same time, it appears that there are also parties that ensure that dairy farmers start working with an independent feed advisor. As a result, the demand for feed changes. Due to these developments and the large availability of roughage, the higher prices for various feed products are not an immediate threat to income. The highest prize was achieved in 2012.

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