Site PB35 in the main pavilion will be Fieldays HQ for the ADMNZ sales team over the next few days. For those able to make it this will present a great opportunity to say hi, put faces to names, chat about the market and your feed requirements, plus go in the draw to win the daily hamper.
Some of ADM’s general observations of farmer trends are;
- A reasonable percentage of farmers are uncontracted on imported feed for 2018/19 due to price perception over the past 6-9 months.
- Uncontracted demand will support prices, even if this demand is centred on the spot market or “just in time” requirements.
- The 2018 Fieldays coincide with Ramadan and the Ramadan holidays which presents a price and supply challenge for importers as there is no active PKE market at the origin.
- Farmers who intimately know cost of production and desired profit margin will continue contract supplementary feed at a value that makes commercial sense to them, as opposed to debating the merits of a good price per tonne versus a bad price.
- The majority of clients intend to not change their farming system away from supplementary feeding in the near term.
- While farming systems are not likely to change, farmers are investigating seasonal substitution of a portion of their PKE volume with other products for FEI reasons.
- The above knowledge gain does highlight farmers are increasing their understanding of using alternate supplementary feed to balance out fluctuating pasture quality and quantity in order to maximise profit.
- Despite the rising market farmers are adjusting price targets to ensure ration performance is maintained at a commercially acceptable level.
With respect to specific feed prices we will be communicating them on inquiry as per normal process. The markets are continually fluctuating in the origins as is the NZ Dollar so it’s reasonable to assume prices will change over the duration of the Fieldays.
If you’re travelling to Mystery Creek, stay safe and we look forward to talking to you over the next few days.
The ADM Team.