JUNE 07 NEWSLETTER

RAW MATERIALS - WHERE IS THE MARKET GOING?...

* PRICE ALERT *
NOT USED MOLASSES FOR A WHILE? LOOK AGAIN

Molasses prices have fallen to very competitive levels for the summer. With other feed prices rising (such as cereals), phone us today on 01948 661602 to get a fantastic quote for a very cost effective form of energy and to boost palatability within the ration.

Molasses performs various important roles within rations:

Promotes high dry matter intakes with no substitution effect
Improves rumen fermentation
Excellent source of fermentable energy, making it suitable to balance rapidly digested protein sources, such as those contained in grass silage
Binds dusty ingredients and minimises waste
Highly palatable

Call us now on 01948 661602 for a molasses to suit your requirements we won't be beaten on price!

FEEDING YOUR YOUNGSTOCK

The foundation of any good quality yielding herd, is only as good as the youngstock you replace into it. It is vital that your herd's next generation is fed correctly in order to determine whether the animal is to be an asset to your business.

From weaning off milk or milk replacers, all of your animals should continue to grow quickly in the most economical and profitable way. This must include checking their weight throughout their lives to ensure that target weights are being met. Failure to reach target weights will lead to small heifers at bulling, small heifers at calving and small heifers at the lactating stage.

To help maintain growth and health we have a full range of replacement feeds available in 25kg bags, ½t tote bags, 1t tote bags and bulk. These products, when fed alongside quality forage, will ensure that all aspects of growth patterns throughout the various stages of their young lives will be taken care of.

COARSE CALF 16 MIXTURE (Oil 3.5%, Protein 16%, Fibre 6.6%)

Extremely palatable mixture fed ad lib from 2 days to 10 / 12 weeks of age.

Contains: Barley, Linseed, Sugarbeet, Hipro Soya, Flaked Peas, Flakes Maize, Sopralin, Molasses, Minerals and Vitamins.

CALF STARTER 18 PELLETS (Oil 4%, Protein 18%, Fibre 8.2%)

Highly palatable 3 mm pellets fed ad lib from 2 days to 10 / 12 weeks of age. Has all the ingredients essential for quick growth.

Contains: Wheat, Sugarbeet, Hipro Soya, Palm Kernal, Wheatfeed, US Maize Distillers,
Rapemeal, Molasses, Minerals and Vitamins and Fat Blend.

SUPERGRO HEIFER REARING 20 NUTS (Oil 4.2%, Protein 20%, Fibre 9.3%)

A specialist heifer replacement product to be fed from 10 / 12 weeks of age to calving. Well balanced ration providing in excess of 1 - 1½ kilos LWG per day.

Contains: Wheat, US Maize Distillers, Rapemeal, Sunflower, Palm Kernal, Barley,
Processed B Maize, Hipro Soya, Sugarbeet, Citrus, Molasses, Minerals and Vitamins and Fat Blend.

GPF HEIFER NUTS (Oil 4%, Protein 18%, Fibre 14.4%)

Popular and cost effective alternative to Supergro Heifer Rearing 20 Nuts, still providing excellent results and uniform growth.

Contains: Soya Hulls, Rapemeal, Wheat, Wheatfeed, Palm Kernal, Sunflower, Sugarbeet,
Molasses, Limestone, Supagold Biscuitmeal, Minerals and Vitamins and Fat
Blend.

As with all our feeds the ingredients have been carefully chosen for digestibility, with well balanced starch and sugars and quality protein sources, along with FIXED FORMULATIONS. We aim to give your youngstock the best start in life.

RAW MATERIALS - WHERE IS THE MARKET GOING?

Our first question should be what raw materials are available for farmers. Maize products from the USA are not generally being imported to Europe by the shippers due to the continuing dispute over the GM issue. The EU still have not granted a licence to import into the EU any maize products with the presence of the gene B10, a zero tolerance is currently in force. It is hoped a licence will be granted in July or August, but there are a further 2 more varieties of GM Maize planted this year to be harvested in October and acceptance of these by the EU is likely to drag on into 2008. So it is very unlikely that the import of Gluten and Distillers Maize products will be available beyond October. A small tonnage is currently being offered after safe arrival June - August @ £120 ex Bristol (is this viable?).

We have been active in the market buying Rape, Soya and Sunflower along with lower protein products such as Wheatfeed, Soya Hulls and Palm Kernal. A lot of these products are trading at prices just a few weeks ago we would have said impossible. We now need to ask ourselves what if anything will bring these prices down, or is demand going to hold these prices firm?

If we look at the high proteins first, we know the present stock of Soya beans for crushing are plentiful with a large carry over projected into the next crop year (610 Million bushels) but this year 8 - 10 million acres less are being planted compared to last year. Remember for the past 3 years we have had near record production 2004 /05 42.2 bushels per acre, 2005/06 43 bushels per acre and last year 42.7 bushels per acre while 2002/03 & 2003/04 the yield was 38 & 33.9 bushels per acre. The United States Department of Agriculture is using a yield potential for the years crop of 41.5 bushels per acre which gives us a carry over into next crop of 320 million bushels, almost half of this years carry over! With any reduction in yield from the highest figure of 41.50 a drop in yield of 3 / 4 bushels per acre would leave a very low carry over of less than 100 million bushels and price rationing!! Any adverse growing conditions will make for a very volatile market.

Rapeseed average plantings this year are up 10 - 15% in the UK and to date is set to produce an average crop of about 2 million tonnes (last year 1.8 million tonnes), usage of Rapemeal will increase replacing part of the usual maize products from the USA, perhaps the major issue is: can the crushers sell the oil to maintain their crush capacity? We were all affected by their inability to sell their oil in the first quarter of this year when supply of Rapemeal was very difficult due to the crushers not being able to crush the Rapeseed as they were full to the gunnels with oil. Providing there are no technical problems, we feel the crushers have adopted a more cautious role in their selling this year and don't expect the same problems as last year. Prices should follow in line with Soya. The prices of Soya and Rape Meals have not been unattractive to buyers as the most valuable part of the seed is undoubtedly the oil, and it's unlikely that oil prices will fall substantially. With the lack of Maize Gluten and Maize Distillers, compounders have been searching for lower protein energy products, Wheatfeed, Palm Kernal, Soya Hulls, Citrus and Sugarbeet have all be considered and the demand for these products has had it effect on the prices, the likes of which have been unimaginable with October - April Wheatfeed trading at around £95, Palm Kernal £98, Soya Hulls £100, Citrus £105 and Sugarbeet £114 all ex store. Grain prices also at very firm levels. All this is driven by the world demand for bio fuels. There are questions being asked about 'how green' are the policies for bio fuels and targets for reducing CO². Some of the practices being adopted are not reported to be good, when you scratch below the surface. These will no doubt be debated in the future and we are sure there will be many about turns in present policies, but in the meantime we will have to deal with the situation as it is, certainly these feed prices are set to stay firm while they are competing with energy prices and until that changes the best guides for following prices will be the cost of a barrel of crude oil and the weather worldwide but especially in the North and South Americas.

DECLARATION TICKETS

REMEMBER TO KEEP ON EYE ON THEM WITH THE EVER CHANGING SITUATION WITH RAW MATERIALS. ARE YOU GETTING WHAT YOU ARE PAYING FOR?

REMEMBER YOU DO WITH GP FEEDS!!

QUALITY PRODUCTS FOR QUALITY PRODUCTION

Contact

Gareth or Rachel (Office)
01948 661602 Fax 01948 871776

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***** PRICE ALERT ***** NOT USED MOLASSES FOR A WHILE? LOOK AGAIN