Is shortage in France causing higher straw prices?

De calm period from a few weeks ago is now almost over. Demand continues to increase and trade becomes more consistent. It appears that there is a higher demand for straw and meadow hay this week, resulting in higher prices.

Problems on the French market
Several French media write that livestock farmers no longer have enough feed to get through the winter months. This forces farmers to purchase extra straw and hay, causing prices on the internal market to rise sharply. The French market is experiencing straw shortages because the product is also used for other purposes (such as methanation).

Since May 2018, the remains of straw and corn have been allowed to be used for methanation, for example, which means that livestock farmers are facing major shortages. That's why the union FASHIONF asked the French Minister of Agriculture to ban this as of February 1. According to the party, this is necessary because many French family businesses do not have enough liquid assets to purchase additional feed.

In France today the price would be €110 to €150 per tonne, free of charge, depending on the transport distance. That is more than twice as much as is normally the case. In addition, there is not always sufficient stock, which forces livestock farmers to get straw from Spain. This also has consequences for the Dutch market, because prices are also increasing here.

There has been an increasing demand for straw in recent times and last week it became apparent that this was also the case in Germany and the United Kingdom more to the market come. The price in the Netherlands this week amounts to €145 per tonne free at farm, an increase of €5 per tonne. It is striking that mainly the top end of the market shows an increase, because the bottom end remains stable at €135 per tonne, delivered to the farm. If you want your product delivered cut, you will often have to pay €5 more.

Several forage traders say that it is very difficult to predict the future. "We are only half way through the straw season and it is not yet clear whether there will be an early spring. It is a matter of waiting and waiting this season," is the motto.

More demand for hay
As mentioned above, French livestock farmers have also started purchasing extra hay. As a result, the price in the Netherlands has increased to €245 per tonne, free of charge. Forage traders report that it is becoming increasingly difficult to find good quality meadow hay, further increasing the top end of the price range. Here and there, a price of €260 per ton, free of charge, is being set for the (very) good quality. 

On the other hand, the demand for spent grain remains stable, which means that this price once again amounts to €2,75 per percent of dry matter. Stocks are also tight for this product. "We are also dependent on an early spring for this product. If it does not arrive, it may result in shortages," several traders report.

Quality increasingly important
Last week it became apparent that there was more demand for silage grass and silage maize. And for silage grass that kite will also fly this week. It is becoming increasingly difficult for livestock farmers to find good quality product, which is why the price continues to rise in small steps. This week the price rises to €60 per tonne free at the farm, with quality determining the price. 

Quality is also always important in the trade in perennial ryegrass. If a seller has good quality in-house, he can easily receive more than €160 per tonne, free of charge. Here and there, prices of €180 per tonne are even quoted, free of charge. "During this period, €180 per tonne is sometimes cheaper than €160 per tonne. You have to look at the quality and not at the price," is what the market said.

Trade in silage maize, on the other hand, has fallen slightly, meaning that the price has not managed to rise again. The price remains at €67 per tonne free at farm this week. The price for this product also depends on the quality and can therefore regularly be far below or prohibited from this target price. 

Other products
There is still only a sparse trade in tall fescue, red fescue and meadow meadow. The prices for these products remain at €170, €170 and €155 per tonne, free of charge, respectively. The price for feed potatoes remains stable at €45 per ton, delivered to the farm.