Millers flag further €40/t feed price hike
Producers warned to expect pinch after surge in ingredient costs
Compound feed prices could rise by a further €40/t in the coming months as feed ingredient prices continue to spiral upwards, suppliers have warned.
Although farmers have already shouldered a €20/t hike on many rations this month, feed manufacturers have predicted further increases between now and the summer.
Compound feed prices for cattle rations have risen by approximately €60-65/t since this time last year, while pig rations have increased by up to €100/t in the same period.
Keenest prices for bulk deliveries of finisher beef rations have moved from around €185/t last January to €260/t currently. Standard 18pc dairy nuts have increased from €200-210/t 12 months ago to €260/t today, while more elaborate rations with supplements have reached more than €300/t.
IFA livestock chairman Michael Doran said the rising input costs of both feed and fertiliser had effectively soaked up any beef price increases.
"Beef price will need to drive on substantially to cover the increases in feed prices," he said.
The higher input costs equate to around 18-19c/kg in beef price and would require the average milk price this year to rise by at least 2.5-3c/l in order for dairy farmer margins to simply stand still, according to the IFA. Pig farmers' costs have also risen by 24-26c/kg in the past 12 months.
However, further increases are on the way, with one southern-based miller maintaining that the real pinch would be felt in May, June and July.