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Analysis roughage

Demand for feed remains high due to drought

30 August 2022 - Jurphaas Lugtenburg

Overall, there is and will remain a strong demand for roughage. The grass does not grow very much and the quality of the maize is very variable. The milk prices are very reasonable and many farmers therefore try to keep the milk among the cows as much as possible.

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According to forage traders, there are currently major differences between livestock farmers. Some of the customers were able to harvest enough good grass in the spring and are not worried for a while. Other customers, especially in the drier parts of the Netherlands and the more intensive companies, do have concerns about getting enough feed. Availability is the major stumbling block.

The maize trade is between the old and the new harvest. The first new maize is gradually coming onto the market. However, much has already been sold per hectare. The supply of good maize from the 2021 harvest is drying up fast. The DCA Indication price for good maize from the 2021 harvest remains the same as last week at €87,50 per tonne. For the maize from the new crop, traders are still very cautious about naming prices. The transport distance is an important factor in this.

Hunger for by-products
The demand for by-products is and remains high. The early start of the maize harvest also boosts the demand for covering products. However, suppliers have difficulty supplying the product for this. Pressed fibre, steam peels and shreds are all scarce and suppliers are already struggling to keep serving regular customers. Beer grains also remain in high demand. The DCA Indication price for brewer's grain has increased to €3,90 per percent dry matter. Feed potatoes remain stable at €45 per ton as far as they are available.

Grass seed hay is still in demand. The quality is good and price-wise it is interesting compared to other structured products. Prices range from €130 to €145 per ton depending on the variety. The trade in meadow hay is quiet. Regular customers, especially from the horse industry, remain in the market, but the demand from the dairy industry is not too bad. The DCA Indication Price remains at €175 per tonne. The demand for straw remains good, but the seasonal peak has passed. The DCA Indication Price this week amounts to € 130 per tonne for both wheat and barley straw.

There is hardly any trade in silage grass. Inquiries are made about silage, but the supply is not there. Livestock farmers who normally have plenty of grass stock are now very careful to sell something. "You must be really lucky to get a nice riding pit now," says a trader. Foil bales are better available, but the quality sometimes leaves something to be desired. The DCA Indication Price is €75 per tonne.

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