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Livestock rations will see price cuts of £20 to £40/t from 1 May, making it the first significant downturn in feed costs since autumn 2020.
Farmers should price around as not all feed mills will apply the price cuts uniformly.
Some merchants with considerable stocks of grain and soya purchased at higher prices are likely to only take £10-15/t off their rations.
Beef mixes
Beef mixes with high cereal and low protein content will see the biggest reductions, putting finisher and general-purpose blends between £310/t and £340/t.
Higher-protein dairy rations are expected to see cuts in the region of £20-25/t, bringing prices back below £400/t for a 20% protein feed.
Further price cuts are expected in June and July, although to what extent remains unclear.
Outlook
At Tuesday’s spring grain conference, market analysts from the Agriculture and Horticulture Development Board (AHDB) confirmed global grain prices will not return to the highs of autumn 2022.
Instead, forecasts point to further market pressure, with the EU, US, Canada and Argentina all expected to produce bumper yields of wheat, barley and maize in 2023.
This comes on top of a significant carryover of 2022 grain stocks, particularly within EU member states, while grain stocks in the UK are also currently at a six-year high point.
In terms of soya, sunflower and oilseed rape, there are no signs pointing to any supply issues within global markets.
All major exporting countries in the northern hemisphere are on track for strong yields, which will follow on from the record soya harvest in Brazil, leaving harvest prices well below 2022 levels.
UFU hits out
Meanwhile, Ulster Farmers’ Union (UFU) deputy president William Irvine has urged farmers to shop around when buying inputs, accusing some suppliers of taking farmer loyalty for granted.
“Having seen the recent publication of accounts outlining the profits made by feed and fertiliser importers, it’s extremely hard to swallow,” said Irvine, who added that big agri companies have been reaping in profits, leaving farmers with the crumbs.
“There’s no doubt that due to the huge profits feed and fertiliser importers have made, they can afford to reduce the price farmers pay for their products,” he said.
He also warned that if there isn’t movement in these high input costs, ultimately farmers will produce less, which will have implications for everyone in the supply chain.
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