Rising feed grain prices: A double-edged sword for farmers
Dry seasonal conditions are pushing feed grain prices higher, creating challenges for livestock producers but some opportunities for crop growers.
Dry conditions have pushed up prices for feed grain commodities, but mixed farming operators who sold crops early and livestock producers relying on supplementary feed are feeling the pinch.
While all feed grain prices have risen, maize prices have jumped the most, reaching $440 a tonne, up $50 in a week.
The sharp increase reflects growing demand amid ongoing dry weather.
Kyabram grower Andrew Pryde said he wasn’t surprised to see prices climbing but noted that he had already cut his maize for silage and sold it before prices surged, missing out on the recent gains.
“There has been really good demand for all feed, not just feed grain but hay and silage,” he said.
“All of my corn went into silage.”
Mr Pryde has planted winter wheat and still has another two weeks of sowing to go. He plans to plant maize again as a summer crop.
Prices for (BAR1) grade barley were set at $377 a tonne, with farmers reporting demand for it also. Lupins increased by $10 a tonne in the past week to trade at $690 a tonne.
United Dairyfarmers of Victoria president Bernie Free from Winslow said he had been locking in fodder this week.
“The pressure is on grain and hay at the moment,” he said.
Mr Free said there were parts of Victoria where supplementary feed was making up 100 per cent of the ration for dairy and livestock cattle.
“There are areas where there isn’t any pasture at all,” he said.
Victorian Farmers Federation livestock group president Scott Young was finishing off sowing a crop of wheat on Friday and said it was evident price squeezes and feed availability were affecting producers.
Mr Young said he would encourage all farmers to do their feed budgets and to consider the prices versus selling and how much feed was on hand.
“We need to make sure the animals have the right amount of nutrition and look out for any welfare concerns, particularly through calving,” he said.
Finley dairy farmer Malcolm Holm said the feed prices were a reflection of the drought conditions in south west Victoria.
He didn’t have maize on hand at the moment but was using wheat.
“Maize is an excellent option for dairy cows, it has similar energy values to wheat but is slow release,” he said.
“It works really well and I can see why people would be chasing it.”
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