Farmers are preparing for further drastic increases in their input costs as feed, fuel and fertiliser are all likely set to further increase in price.
Last week, a number of feed mills had indicated that the next increase in feed costs could be anywhere from €30-50/t, however, as the situation is evolving so rapidly, meal price increases could be even higher than this.
One meal sales representative told Agriland that “it’s difficult to say exactly how much meal costs will increase, but it will definitely be going up in price anyways”.
“The situation is just evolving so rapidly,” they added.
In January, many animal feed mills across Ireland hiked meal prices up €20-€25/t as a result of price increases on the global market, and early indications suggest the next price rise could be more than double the price increase seen in January.
This price increase will be felt by beef finishers dependent on concentrates for their finishing system and will likely take further from any increased revenue attained from the rising beef price.
While feed is set to increase in price, some fertiliser companies have recently moved to completely withdraw their price lists as a result of supply issues associated with the ongoing conflict in Ukraine.
While many fertiliser companies are not currently quoting for fertiliser until supply issues are sorted, early indications would suggest further price hikes can be expected in fertiliser too.
Finally, diesel has also shot up further in price over the past two weeks, with some quotes for ‘green’ diesel coming in as high as €1.60/L as of Monday, March 3.
Many contractors have expressed concern about securing ‘green’ diesel in the coming weeks and are alarmed at how much the cost of filling their diesel tanks has increased.
While the beef trade is currently in a positive position, the alarming rise in farm input costs will quickly erode any additional returns from the market this year.