The dairy farmers are ready to get the first cut of grass from the land. At some locations this is already possible, but the majority still have to wait until the soil is a bit drier. It has direct repercussions on the feed trade. Even the demand for straw shows a small decrease, but it is the feed potatoes that give up.
After a cold spring and a slow start in grass growth, the crop sprouted from the ground in the last 2 weeks. In many places, however, you have to wait a while until the soil is dry enough, but then the first cut can begin. A few have even started, but preparations are already in full swing everywhere.
As a result of the upcoming first cut, the demand for feed has dried up. The trade in silage maize in particular has had a tough year. Not much happened, but now the revival that is usually seen around this time of year is not happening. The price remains at an average of €56 free of charge. This with a range of €54 to €58 free of charge.
Sellers want to get rid of grass silage
With the silage grass things are different and it is precisely the sellers who want to get rid of the pit at almost any price. Dairy farmers in the north of the country in particular want to make room on the plate. It yields prices of €20 to €45 per tonne free at farm. Here too, demand is decreasing.
The situation for feed potatoes is not much different. In combination with the wide range, the price drops to €25 per tonne, free of charge. Prices are sounding even lower, which makes a further downgrade likely.
Maintains in the by-products the spent grain still a price of €2,40 per percent dry matter. Rising prices for soy make the product more attractive again, but there must be space to store it.
Binding advice does little
Meanwhile has the binding advice of the Land Development Committee has hardly set the tongues in motion. It can be an incentive to convert grass into wheat or barley in order to achieve the standard. However, this is not possible within the derogation for broader use standards of nitrogen. The question is also asked how by-products such as spent grains are handled.
Although protein and fiber are favorably priced, this cannot be said for the structural products. Straw, wheat and barley remain at €160 per tonne, free of charge. There are still some cheaper parties, but they are intended for regular customers. If the product must come from Spain, the price can rise to €175 per tonne. Demand comes from goat farmers, dairy farmers and horse farmers.
Dairy farmers versus horse farmers
The hay is between dairy farmers and horse farmers. Meadow hay in particular is becoming scarcer. The price increases at the same pace. This amounts to €185 to €190 per tonne, free of charge. A type of hay that increased in price less dramatically was perennial ryegrass. Increasing demand is slowly being seen as dairy farmers look for a replacement for wheat straw. The price remains at €140 per tonne, free of charge.
In the structural products we have to wait for the new harvest. Until then, the risk of price increases remains high. Although there is less demand in some places, demand remains too high to break the current trend.