The price of rations is trading at around the same as this time last year, but demand is considerably lower. Basic 14% beef coarse rations are being quoted at €220-€270/t. This is much lower than 2013 levels, when €50/t more was being paid for rations.
The Irish Farmers Journal carried out a survey on a number of feed merchants across the country on the price of animal feed rations. It is evident that the price of most rations is generally similar across the country, with some differential.
In the south, an 18% dairy coarse ration is trading at €250-€275/t, which is a little lower on last year’s price of €265-€305/t. A 21% dairy nut is being quoted at €280-€325/t, with higher-spec nuts with additives increasing the price quoted.
An 18% sheep coarse ration was quoted at €250-€295/t. Some farmers are increasing the crude protein levels fed to sheep prior to lambing and 20% rations are selling from €275/t to €310/t.
Straights, such as rolled wheat and maize meal, which would be used commonly in rations, are selling at €198/t and €230/t respectively. Beef nuts with a 16% crude protein inclusion rate is selling for €250/t to €270/t.
Rolled barley is trading at €190/t to €230/t. Soya bean meal, a much more volatile commodity, is trading at €430-€445/t.
Reduced demand
This year, many millers are reporting a much quieter season in terms of ration sales. They are putting this fall in sales down to a number of reasons. Excellent grass-growing weather throughout 2014 meant livestock stayed outside for longer than usual, reducing the use of bought-in feed. The abundance of silage is also reducing concentrate feeding.
During the wet summer of 2012 and the cold spring of 2013, farmers were very much reliant on feeding concentrates to support poor-quality and low-quantity fodder supplies. This year that is not the case and plenty of silage and hay was saved during the summer.
Poor beef prices up until recently may have knocked confidence out of many farmers who would usually finish cattle on high-concentrate diets during the winter months.
In the south, millers are noticing dairy farmers dropped their concentrate input because many are in an over-quota situation and want to limit their exposure to a superlevy bill. One miller said many dairy farmers dried off cows in early October and they won’t be feeding them again until calving in February.
Price difference
It is clear that there are significant differences in prices between similar rations, with the highest-priced rations not necessarily the highest quality. In some cases, a high protein content is used to increase the profile of a feed.
The advice is to weigh up deals on energy content, protein content and price. Ask what type of proteins are used in the feed, eg soya (a high-quality protein). Inclusion rates will dictate the cost.
To keep costs down, always make sure to ring around to get a quote from different millers – this may also help when negotiating a price.
Cash is king this spring. Merchants are keen to accept cash in place of giving more credit.
Payment up-front may lead to discounted prices of €5-€10/t depending on the supplier and circumstance. If using credit, try to keep the payback period as short as possible. An agreement of some sort should help reduce the interest bill and avoid possible confrontation with the miller.
Future meal prices
The current weakening of the euro poses a threat for imported feed prices, while making the export of EU grains more competitive. This could increase prices for feed grains in the coming weeks and months as new stock is being purchased. However, it must be remembered that many millers will have covered or hedged against imported maize last autumn, when prices were at their lowest during the US maize harvest.
Some of these positions still apply and millers may have the option to take delivery of these lower-priced positions to help reduce the impact of higher import prices caused by the strengthening dollar/weaker euro.
This forward purchase worked out to be a good investment for some Irish millers as prices recovered. The fact that demand has been lower has left them with higher volumes of cheaper products than they anticipated.
However, it is likely that forward-cover taken by some millers a month or two ago may be about to run low and new stock will have to be purchased in the new currency environment.
Currently, because of the strength of the dollar versus the euro, it will cost millers more to buy in raw materials for formulation, unless the price at the point of origin decreases. One miller said that every 1c increase of the dollar compared with the euro is the equivalent of a €5/t increase in the price of raw material.
The dollar has strengthened by 7c-8c since December. Millers warn that these increases will be passed on to farmers in the next few weeks, with rises of €5-€10/t possible. The strength of the dollar is one of the main drivers of price increases and euro-priced ingredients will become better value.
Rolled barley is currently €7/t higher than this time last year. Soya bean meal on the spot market is back slightly on this time last year, selling today at €433/t.
As always, soya bean meal inclusion will add significantly to the cost of ration manufacturing. Some millers will use different protein sources, such as rapeseed meal that has a current spot price of €288/t, but the quality of the protein will not be as good.
Ration prices are similar to last year.Demand lower due to adequate silage and superlevy.Some merchants are carrying lower price straights due to forward-buying. Shop around to get the best quote.Compare like with like when assessing value.Good savings where cash can be used for purchase.
The price of rations is trading at around the same as this time last year, but demand is considerably lower. Basic 14% beef coarse rations are being quoted at €220-€270/t. This is much lower than 2013 levels, when €50/t more was being paid for rations.
The Irish Farmers Journal carried out a survey on a number of feed merchants across the country on the price of animal feed rations. It is evident that the price of most rations is generally similar across the country, with some differential.
In the south, an 18% dairy coarse ration is trading at €250-€275/t, which is a little lower on last year’s price of €265-€305/t. A 21% dairy nut is being quoted at €280-€325/t, with higher-spec nuts with additives increasing the price quoted.
An 18% sheep coarse ration was quoted at €250-€295/t. Some farmers are increasing the crude protein levels fed to sheep prior to lambing and 20% rations are selling from €275/t to €310/t.
Straights, such as rolled wheat and maize meal, which would be used commonly in rations, are selling at €198/t and €230/t respectively. Beef nuts with a 16% crude protein inclusion rate is selling for €250/t to €270/t.
Rolled barley is trading at €190/t to €230/t. Soya bean meal, a much more volatile commodity, is trading at €430-€445/t.
Reduced demand
This year, many millers are reporting a much quieter season in terms of ration sales. They are putting this fall in sales down to a number of reasons. Excellent grass-growing weather throughout 2014 meant livestock stayed outside for longer than usual, reducing the use of bought-in feed. The abundance of silage is also reducing concentrate feeding.
During the wet summer of 2012 and the cold spring of 2013, farmers were very much reliant on feeding concentrates to support poor-quality and low-quantity fodder supplies. This year that is not the case and plenty of silage and hay was saved during the summer.
Poor beef prices up until recently may have knocked confidence out of many farmers who would usually finish cattle on high-concentrate diets during the winter months.
In the south, millers are noticing dairy farmers dropped their concentrate input because many are in an over-quota situation and want to limit their exposure to a superlevy bill. One miller said many dairy farmers dried off cows in early October and they won’t be feeding them again until calving in February.
Price difference
It is clear that there are significant differences in prices between similar rations, with the highest-priced rations not necessarily the highest quality. In some cases, a high protein content is used to increase the profile of a feed.
The advice is to weigh up deals on energy content, protein content and price. Ask what type of proteins are used in the feed, eg soya (a high-quality protein). Inclusion rates will dictate the cost.
To keep costs down, always make sure to ring around to get a quote from different millers – this may also help when negotiating a price.
Cash is king this spring. Merchants are keen to accept cash in place of giving more credit.
Payment up-front may lead to discounted prices of €5-€10/t depending on the supplier and circumstance. If using credit, try to keep the payback period as short as possible. An agreement of some sort should help reduce the interest bill and avoid possible confrontation with the miller.
Future meal prices
The current weakening of the euro poses a threat for imported feed prices, while making the export of EU grains more competitive. This could increase prices for feed grains in the coming weeks and months as new stock is being purchased. However, it must be remembered that many millers will have covered or hedged against imported maize last autumn, when prices were at their lowest during the US maize harvest.
Some of these positions still apply and millers may have the option to take delivery of these lower-priced positions to help reduce the impact of higher import prices caused by the strengthening dollar/weaker euro.
This forward purchase worked out to be a good investment for some Irish millers as prices recovered. The fact that demand has been lower has left them with higher volumes of cheaper products than they anticipated.
However, it is likely that forward-cover taken by some millers a month or two ago may be about to run low and new stock will have to be purchased in the new currency environment.
Currently, because of the strength of the dollar versus the euro, it will cost millers more to buy in raw materials for formulation, unless the price at the point of origin decreases. One miller said that every 1c increase of the dollar compared with the euro is the equivalent of a €5/t increase in the price of raw material.
The dollar has strengthened by 7c-8c since December. Millers warn that these increases will be passed on to farmers in the next few weeks, with rises of €5-€10/t possible. The strength of the dollar is one of the main drivers of price increases and euro-priced ingredients will become better value.
Rolled barley is currently €7/t higher than this time last year. Soya bean meal on the spot market is back slightly on this time last year, selling today at €433/t.
As always, soya bean meal inclusion will add significantly to the cost of ration manufacturing. Some millers will use different protein sources, such as rapeseed meal that has a current spot price of €288/t, but the quality of the protein will not be as good.
Ration prices are similar to last year.Demand lower due to adequate silage and superlevy.Some merchants are carrying lower price straights due to forward-buying. Shop around to get the best quote.Compare like with like when assessing value.Good savings where cash can be used for purchase. 
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