Fodder market stalemate due to high prices
The fodder market has been characterised to date by a stand-off between buyers and sellers.
Tight cash flow and a reluctance on the part of farmers to buy at too high a price have so far restricted the number of fodder sales being closed, despite a predicted shortage of feed for next winter.
Fodder prices vary widely from region to region, with sellers in the south-west and west reporting good demand for hay and silage. However, sellers in Tipperary and Meath have dropped their prices by €5/bale for silage in the past week. Where buyers see value on offer they are quick to snap it up.
One seller in Trim, Co Meath knocked €5/bale off 100 bales of good quality silage, dropping it to €30/bale. However, the lower price was still not enough to tempt buyers.
In north Tipperary, another seller quoting €35/bale admitted that he believed €30 or slightly less would most likely be the selling price.
In north Cork, a farmer with 600 bales of silage to sell advertised it at €30/bale but was willing to drop to €25-27/bale for buyers taking large quantities.
In Offaly, a seller with 50 bales quoted €30/bale ex-yard or €28 ex-field, but admitted demand was weak. He maintained most buyers were waiting to sell cattle later in the summer before buying feed. However, another Offaly seller sold his entire offering for €25/bale within a day of advertising it.
It was a similar story in Wicklow, where a seller secured €35/bale for silage from a buyer in Co Galway within a few days of advertising it.