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Sunday 11 December 2016

Silage wrap now at €85 per roll

Ken Whelan

Published 11/05/2016 | 02:30

The cost of silage wrapping will be marginally better this year than in 2015.
The cost of silage wrapping will be marginally better this year than in 2015.

Farmers can expect to pay around €85 for a roll of silage wrap this season, with a bumper crop last year wiping out any overhang of stocks.

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The €85 a roll price, including VAT and levies, compares marginally better to last year's prices which swung from €80 at the beginning of the season up to €94 on average for most of 2015.

A drop in the cost of silage wrap was expected last year due to the plunge in oil prices. However, industry says this did not emerge due to the devaluation of the euro.

However, this year prices are being put down to a "scarcity" of resins used to manufacture it and increased demand in the Far East.

Wrap manufacturers and retailers say they have no overhanging supplies from last year at retail level. Between 14,000 and 16,000 tonnes of silage wrap are used on Irish farms each year.

Sean O'Connor, general manager of VPI in Cork, said the price level for this year was around €85 a roll. "There was a zero surplus of stock coming into the year at retail level," he said.

Volac's Pat Cahill said they expected similar prices this year of around €84 for cash customers and €87 for credit customers.

He said disparity in wrap prices North and South was down to farmers in the Republic mainly using credit terms that involved late payments.

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On the co-op retailer side, a spokesman for Dairygold said the per roll price will be around €85, with the pallet price at €83.

He said prices last year began at €82 but went up when stocks ran out, with price influenced by oil prices, currency fluctuations, resin price levels and transportation costs.

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