There have been significant increases to concentrate feed prices this week with merchants adding £12/t to £20/t on to ration prices.

High maize beef finishing rations are now trading from £212/t to £222/t depending on the ingredients used. The same rations in early April were trading around the £200/t mark.

Merchants are now quoting £220/t to £225/t for general-purpose, 16% protein beef rations, a rise of just over £15/t on last month.

High protein dairy rations have also jumped significantly, with up to £20/t added on to prices. An 18% ration is trading around the £238/t to £240/t mark, with 20% rations starting from £245/t.

The price hike is also being felt in the sheep sector. Ewe rations are now selling for £250/t to £260/t depending on the make-up of ingredients used, with intensive lamb finishing pellets costing over £240/t.

Discounts are available for farmers buying larger quantities, as well as price reductions being offered depending on payment option.

Merchants indicate that trying to keep on top of the rises in key products used in animal feeds is becoming increasingly difficult. Stores of native grains are now depleted, leaving merchants completely dependent on imported feed, exposing them to global price trends and currency fluctuations. Rolled barley purchased this week will cost farmers over £200/t, with soya now priced at £390/t to £395/t.

Soya has risen by more than £90/t since the start of the year. However, when compared to barley prices, maize meal is extremely good value at £188/t.

Straights such as distillers and maize gluten are becoming increasingly limited in availability. Some merchants indicate they have been unable to purchase sufficient quantities of both products this week due to growing global demand for animal feed, and reduced quantities coming onto the market.

The knock-on effect sees demand for alternative products growing. Feed importers point to growing competition in mainland Europe, South America and northern Africa for high protein feeds, as well as by-products such as distillers and soya hulls.

Outlook

The short-term outlook for feed prices is that further increases will be inevitable unless the demand for animal feed eases.

While merchants forward-buy ingredients to insulate against short-term volatility, feed mills have been working at capacity since autumn due to limited fodder reserves.

Some merchants indicate that feed sales this spring were up by 40% when compared with the same period last year, which has left them repeatedly returning to spot markets to secure additional straights to meet orders.