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Prices have limited influence on feed demand

9 November 2021 - Jurphaas Lugtenburg

The roughage trade is running as usual for this time of year. An important part of the livestock farmers have built up sufficient winter stock and are limited to the market to buy additional feed. 'We do our job well, but it's not really busy', is a frequently heard comment from forage traders this week.

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That does not mean that prices for roughage will drop. By-products and single raw materials in particular remain relatively well priced. But if you put it in a broader perspective, it is not that bad according to several traders. For example, concentrates have become considerably more expensive due to high grain prices. Diesel costs a lot more than a year ago, not to mention the extremes on the fertilizer market. Milk prices have also risen (slightly) in recent months, but this also seems necessary for the average livestock farmer given the rising costs.

Demand remains good
Despite the fairly high prices, demand for by-products remains strong. What becomes available quickly finds a destination according to various traders. Staying focused on costs is always important and it seems that livestock farmers are increasingly trying to save on concentrates by supplementing single raw materials with the ration. The DCA Indicative Price for spent grain remains the same at €3 per percent dry matter. Feed potatoes are at €45 per tonne this week.

The straw trade is quite good for this time of year. It is the customers with little storage of their own who are at the market and they simply buy what they need. The DCA Indicative Price for wheat and barley straw remains the same as last week at €125 per tonne.

There is only demand for very good silage grass
Not much is being done in silage at the moment. The very nice stuff is still requested by goat farmers, for example, but they are very critical of the quality. The silage grass that does not meet these requirements is difficult to wear out. The DCA Indicative Price remains at €60 per tonne.

There is not much trade in hay. Buyers for meadow hay are mainly found in the horse farming industry. The DCA Indicative Price for meadow hay is €180 per tonne. Good Dutch grass seed hay is difficult to obtain. Customers are partly switching to hammered Spanish straw or traders are buying grass seed hay from Denmark. Prices remain unchanged compared to last week at €130 to €150 per tonne depending on the variety.

The silage maize market can be divided into two segments. Particularly in the north of the country, one can occasionally find a plot of late maize that is established and sold fresh from the chopper for approximately €60 per ton delivered to the farmer. The trade in corn from the pit has yet to get going. A cautious first indicative price is around €70 to €75 per tonne for good maize.

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