Sources in the feed trade indicate that orders are running ahead of last year as strong prices for milk and beef have made farmers increase feed levels.

“We are sitting 15% ahead of this time last year. There has been no let-up in output at all since before the winter,” one local sales rep told the Irish Farmers Journal.

On the dairy front, records compiled by AHDB show that the current milk-to-feed price ratio of 1.5 is at its highest level in 17 years.

The last time milk-to-feed price ratio was above the 1.5 mark was in early 2008 when concentrates were costing £170/t and milk price was 26p/l.

Similarly, beef finishers are keen to keep feeding forward cattle to get animals finished while beef prices remain strong.

Feed prices have remained relatively steady in recent months, although low protein rations such as beef mixes could see a £5/t rise in new price listings for May.

However, high protein rations are moving the opposite way, with £5/t set to come off certain dairy rations at some local mills.

The price change stems from cereal markets generally edging upwards, whilst the price of soya has continued to ease back.

Feed trade representatives also point to higher running costs at mills in general, with the likes of staff wages, credit costs, and machinery expenses all playing in to current feed prices.

Rations

At present, beef finisher rations with 50% maize content are generally available for £255 to £270/t.

Dairy rations vary widely as prices depend on protein levels and the inclusion of supplements and buffers. In general, most dairy nuts are now typically available for £300 to £315/t.

The current outlook for feed prices seems favourable, with key markets for straits expected to soften over the summer.

Rolled barley is now available for around £225/t, with maize meal at £240/t and soya is around £335/t. Deals for summer or winter delivery for some straights are running below current prices.

Tariffs

However, a concern lingering in the background is any fall out from trade tariffs that could be imposed by US president Donald Trump.

There is currently a 90-day pause on his tariff plan whilst trade negotiations take place, although disruption to international trade after that could impact how local grain traders source certain straights.

Another potential impact of any global trade upheaval on the local feed sector would be the effect on currency markets.

Ends