Dairy

Feed prices stable

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January 11, 2017

Reid’s Stockfeeds commodity manager Marcus Dingle said the growing season for grain and hay got off to a good start.

Although milk price has been an issue for the dairy industry this year, the good seasonal weather conditions are likely to keep feed prices relatively stable.

Reid’s Stockfeeds commodity manager Marcus Dingle said the growing season for grain and hay got off to a good start.

‘‘There is some good quality coming through so we’re fairly positive about the coming season,’’ Mr Dingle said.

Although demand for feed was hit by the mid-year milk pricing cut, there has been some recovery.

‘‘Over time we’re hoping to get back to where it was,’’ Mr Dingle said.

‘‘I think initially some farmers got a shock and cut back on feeding, but many have since decided: ‘we’ve taken a hit, but now it’s back to business’.’’

He suggested now was a good time to consider forward contracts and recommended engaging at least 10 to 15 per cent of estimated demand.

‘‘Some customers have booked in up to a quarter.’’

Mr Dingle suggested farmers get full pricing information when they are trying to secure feed so they can make a proper comparison.

‘‘Always ask about freight and storage charges and don’t forget to add the cost of any crushing or processing.

‘‘The price might like good when quoted in the paddock but work out what it’s going to cost you in the end.’’

Although there has been some discussion about quality of feed this season, Mr Dingle said Reid’s had a comprehensive quality assurance system, and only purchased from trusted suppliers.

Reid’s Stockfeeds will be at dairy week at site 28 in the Blackmore and Leslie Complex.

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