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Search for grass on the roughage market

27 May 2020 - Jorine Cosse

Last weekend's rain did not reach every place in the Netherlands, which is also noticeable on the feed market. Traders report slight unrest among livestock farmers. What effect does this have on prices?

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It is clear that it is dry. Here and there, parts of the country benefit from a civilized rain shower, but it is not enough. The grass is growing steadily, so there is fear that the grass yield will be quite disappointing this year. Traders report this week that demand for grass is increasing. The problem, however, is that it is almost impossible to obtain, except for some wet autumn potholes.

Due to the minimal supply, there is uncertainty surrounding the price, just like last week. Some traders can hardly find grass and do not dare to estimate the price properly. The price is very dependent on quality and certainly varies per area. Other traders indicate that livestock farmers trade the grass among themselves or keep it themselves as a precaution. The prices mentioned vary enormously, from €60 to more than €100 per tonne (farm free). The upward trend is therefore clear, but a clear price has not yet been established. That is why the average price this month is €70. With this, the price reaches an all-time high since tracking from 2017.

Drought means little supply
Although the prices of corn and hay are not rising significantly, there is already a buzz surrounding the products. Just like grass, maize is also difficult to find, especially good maize silage with the desired percentages, livestock farmers keep in their own silo. This does not directly result in a price increase, so the price will remain at €70 per tonne this week. This price does create considerably more stability than was the case last year.

The demand for meadow hay, among other things, is increasing. This is not yet reflected in the price, but there is a chance if this situation continues. For now, the price remains stable at €180 per tonne. Livestock farmers now use more hay than they normally would for young cattle, among other things, because the grass on the meadows is not growing sufficiently.

The feed potato market is also 'benefiting' from the drought. The supply of potatoes is enormous, but the demand actually supplements this well. Most traders indicate that the price remains somewhat decent at €30 per tonne, because supply and demand are in balance. They are afraid that with significantly less demand, potato growers would almost have had to spend money to sell the potatoes.

Beer grains and straw
There is actually little to report about the straw and spent grain prices. The demand for straw is now increasing, which was reflected in an increase from €2 per tonne to €10 per tonne 110 weeks ago. This week, just like last week, increasing demand has not directly led to a price increase. The price remains stable for both barley and wheat straw.

And then the spent grain price; this will also remain stable this week between €2,70 and €2,85 per % dry matter. Supply and demand are in balance, which ensures this stability. While the high price continues this year, partly due to the corona crisis, the price actually sank to the bottom last year. Traders are wondering what will happen when the catering industry can (partially) open its doors again, but there does not appear to be an immediate price change. The question remains whether consumers will indeed immediately visit the terraces and increase beer consumption.

The other roughage products also all remain stable in price. Click here for current prices.

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