Rising feed prices

[A.T. Hagan]

How many of you all are seeing increasing feed prices yet?

I knew as soon as that first USDA report came out about lowering 2012 crop yield estimates it was going to affect feed prices and it seems to have started already.

My layer feed has only gone up (as of last Friday anyway) only twenty five cents a bag. But the gamebird starter I buy has gone up two dollars a bag in two weeks! Seems to be the protein components that have skyrocketed. My layer feed is 15% protein, but that gamebird starter is 28%. I just read this morning that soybean meal prices are predicted to rise still further.

Bird prices are going to have to go up this fall.

 

[JerseyGiantfolk]

My feed actually lowered from $18.00 per 50lbs bag to $16.00 per 50lbs bag. Well, that was earlier this week when I got the feed. (Nutrena 18% all flock)

I feed my chicks Purina Flock Raiser... and the price for a 50lbs bag is $21.00. And going higher

 

[Fred's Hens]

I understand that most mills are working off the grains of last year and last year's prices, so yes, our prices have actually been down a bit of late.

Once the mills have to use this year's grains, I expect a very healthy upswing, due to the almost catastrophic year in the corn belt.

 

[A.T. Hagan]

Here's what's coming:

http://www.startribune.com/business/161630185.html

LONDON -- Soybean meal, an ingredient used in feed for pigs and cattle, has outperformed commodities globally this year on record demand from China.

Soybean meal futures have surged 42 percent in 2012 on the Chicago Board of Trade, the best performer out of 80 commodities tracked by Bloomberg from New York to Tokyo, ranging from jet fuel to gold. China, holding the world's biggest hog herd, will have a sixth consecutive year of record soybean meal consumption in the 2012-13 season that starts Oct. 1, the U.S. Department of Agriculture estimates. China is the world's biggest consumer of soybean meal, raw soybeans and pork.

"Meal is a needed part of the feed supply, and demand from China's hog herd has been huge," said Nick Higgins, an analyst in London at Rabobank International.

U.S. processors produced 3.32 million tons of meal in May, up 14 percent from the same month a year earlier, according to the most recent data from the National Oilseed Processors Association in Washington. Since Oct. 1, China has imported 9,700 tons of U.S. soybean meal, compared with none during the same time period a year earlier.

This explains why it's the protein components of feed more than grains (so far) that is driving up prices. Worse still to come I'm afraid once this year's grain crop starts to come in.

 

[Fred's Hens]

The world wide competition for grains and food is just beginning. Global trading has brought a new dimension to food stuffs. The earth has gone from 4 billion people to 8 billion in the blink of an eye. Rising nations are demanding more and more. Grains are now more raw material commodities than food and competition gets more fierce.

Sadly, local gardening type enterprises, which REALLY feed the most people in the world and still could, are being downplayed as populations are migrating toward urban, industrial areas. The beat goes on. Stayed tuned.

 

[devora]

Thank you for the heads up. I don't usually pay that much attention to the prices b/c I'm only raising a few birds, but it is important and interesting.

I lived in China for years: they have a lot of people to feed. Be afraid, be very afraid!

 

[Nslangton]

Over the past five years, the costs of feeding our animals has almost doubled. I think the extreme weather conditions across the country have had the most impact on the pricing. The rising fuel prices also affect the pricing passed down to the consumer. We have had another terrible year for crop production and the costs will continue to rise. This is the downside of owning animals, you need to budget for increased feed prices for the animals as well as for your family. I will not complain though, many farmers in this country are loosing everything they have worked their entire lives for so paying a few more dollars for hay, grain, and produce is not worth complaining about in my mind.

 

[Chris09]

Over the past five years, the costs of feeding our animals has almost doubled. I think the extreme weather conditions across the country have had the most impact on the pricing. The rising fuel prices also affect the pricing passed down to the consumer. We have had another terrible year for crop production and the costs will continue to rise. This is the downside of owning animals, you need to budget for increased feed prices for the animals as well as for your family. I will not complain though, many farmers in this country are loosing everything they have worked their entire lives for so paying a few more dollars for hay, grain, and produce is not worth complaining about in my mind.

Depends on where you live.
I have feed bills from 5 years and I will let you know it has no where near doubled. I pay about 3.00 more per 100 lbs


Chris

 

[Lazy J Farms Feed & Hay]

I understand that most mills are working off the grains of last year and last year's prices, so yes, our prices have actually been down a bit of late.

Once the mills have to use this year's grains, I expect a very healthy upswing, due to the almost catastrophic year in the corn belt.

I've been in the feed industry for over 15 years and none of the mills I work with price their grain in this manner. They use the local prices for commodities each week to adjust their prices.

 

[Fred's Hens]

I've been in the feed industry for over 15 years and none of the mills I work with price their grain in this manner. They use the local prices for commodities each week to adjust their prices.

Good to know. Good to know indeed.

Jim, I'm heading over our local Hubbard mill tomorrow for feed. I'll chat with the guy and see what he has to say, what he expects, how he is re-acting, etc. He's probably sick of talking about this already.