Farm Ireland

Friday 19 January 2018

Costs drive up silage wrap prices

Caitriona Murphy

Caitriona Murphy

Prices for silage wrap have risen by €3-4 per roll since last year on the back of higher raw material costs.

Quotes for silage wrap range from €73 to €79 per roll this year, with many manufacturers predicting pressure on supplies from mid-June onwards.

Prices for raw material polymer on the international market have risen by approximately €6-10/roll since the 2009 silage harvest, with most of this increase happening since February.

However, the cost of silage wrap to the farmer has not increased by the same level due to the year-round manufacturing processes.

A roll of 750mm black Silotite plastic from Irish Polythene Industries is expected to retail at €77 per roll this year, including VAT and the IFFPG levy for disposal.

This is €3 per roll higher than the same time last year, but there will be discounts available for cash and large volume customers, according to Sean O'Connor of Irish Polythene Industries.

The company's most popular silage cover, 60ft x 120ft, will retail at €135. Mr O'Connor warned that stocks of plastic were lower than usual at all levels from manufacturer to distributor and retailer.

"We are getting orders for 2-3 pallets from customers who would normally keep stocks of 20-30 pallets," he said. "Everyone is keeping tighter control on stock supplies because of the credit situation."

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Seamus O'Callaghan from Durapak Agri said their Megawrap rolls would retail at between €74 and €78, including VAT and levy. The Durapak Hi-Tac roll, with a 25-micron thickness, will retail at €75-79. A 3pc discount for large volume and cash customers would be applied where appropriate, he said.

"Credit arrangements have changed significantly over the past two years and everyone is carrying less stock," he said.

"There could be a serious shortage of plastic in mid-June," he warned.

ITW Crop Packaging is quoting a price of €73-€75 per roll for Silawrap.

Irish Independent