The price of feed is sluggish to follow the decrease in grain prices. The price of maize and soybeans, the main components of dairy rations, has decreased significantly since the beginning of this year. Average nearest month Safex prices for yellow maize has decreased from R3 165 per tonne in January 2014 to R1 840 in October 2014, and soybean prices from R6 403 per ton to R5 107.
The weighted feed price based on 70% maize and 30% soybeans decreased with R1 316 or 32% in the ten-month period. The price of a typical dairy meal only decreased by R400 or 10% in the same period.
MPO economist Dr Koos Coetzee said that feed manufacturers should reduce prices even further. Farmers must ensure that they negotiate the best prices from feed manufacturers. The products these companies sell are largely comparable and farmers should shop around for better prices. In periods when grain prices decrease, self-mixing of rations is another option.
Published on Monday, 27th October 2014 - 11:46
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