Slightly higher milk price for better roughage trade

Due to the high prices, it is relatively quiet on the roughage market. According to most forage traders, sales are going well, although a slightly better financial position of the dairy farmers could have given the market a boost.

Some dairy farmers harvested the first cutting last week between showers. The rest wait until the grass is even heavier or when the weather is firmer. Sowing corn is also difficult, especially in the north of the country. Partly due to the uncertainty this creates, according to the trade, demand for roughage remains reasonably good for this time of year.

Major differences between the regions
Farmers who have the grass in the silo can reasonably estimate how much silage grass they have left or how much they will lack. As a result, there is a slightly greater supply of silage grass at the moment. Livestock farmers who are short on silage do buy, but are careful not to buy more than strictly necessary at current prices.

Good silage remains difficult to obtain. The DCA Indicative Price drops this week by €2,50 to an average of €70 per tonne. There is a large spread between the different areas in the Netherlands. 

There is not much trade in silage maize. The DC Indicative Price remains the same as last week at €70 per tonne. Many livestock farmers who are short on corn supplies are fairly cautious, according to traders, and try to supplement the ration with other cheaper (by) products where possible. 

Good demand for by-products due to expensive concentrates
There remains good demand for by-products. Partly due to the relatively high chunk prices, alternative products such as steam peels, spent grains and pressed fiber remain in high demand by dairy farmers. The DCA Indicative Price of spent grain remains the same as last week at €2,65 per percent dry matter. The price of feed potatoes also remains the same as last week at €42,50 per tonne. But just like in recent weeks, the supply of feed potatoes remains limited.

Straw is expensive due to additional transport costs 
There is still plenty of straw to be found in Europe, but not in the places where it comes from in other years. Several forage traders are moving to Denmark or Spain, where straw (although well priced) is still available, resulting in higher transport costs.

In other years, a number of traders sometimes do something in England, but that is hardly an issue this year. The customs formalities that have been in force since Brexit have created a significant hurdle. Traders prefer not to take the risk of freight being returned at the border with all the associated costs. This fear is not entirely unfounded, because it has already happened a number of times that freight has been returned by customs.

The meadow hay is almost gone. Most traders try to keep the stocks that are still available for regular customers. Good quality hay remains stable at €200 per tonne. Grass seed hay is not widely sold. Traders have generally held less stock of grass seed hay this season and are now preferring to offer livestock farmers straw as an alternative. Traders who have done some grass seed hay quote prices of around €150 per tonne.