Surge in cost of animal feed ingredients

A SURGE in feed ingredient costs on world markets over the last month has killed the chances of a drop in ration prices this winter.

Compounders predict that the cost of beef and dairy rations will hold at current levels into the winter, with most quoting a delivered price of €255-275/t for standard beef rations, depending on protein content, ingredients and tonnage.

It had been anticipated that feed ration prices would ease this winter on the back of expected bumper harvest yields in the US, Ukraine and Russia.

However, stronger demand from China and harvest difficulties across Europe and North America has prompted a 10pc jump in the cost of feed ingredients.

Importers report that the cost of soya has increased from €350/t to €380/t, with distillers increasing from €210/t to €230/t. Rape meal prices have jumped €15/t to €245/t, while corn gluten has increased from €195/t to €205/t. Soya hulls are €10/t dearer at €175/t, with beet pulp increasing by a similar margin to €215/t.