02/13/2021
We would like to acknowledge and bring light to the recent increases seen in feed prices across the board. As you may know, this is something that the entire country is facing, as the costs of feed ingredients have gone up for several economic reasons with the current market trends. Here are just a few issues at hand that feed manufacturers are facing:
1. As 2021 just begins, the U.S. is faced with weather challenges and changes in demand for animal protein putting price pressure on feed costs. As China rebuilds it’s swine herd, it is putting strength on the global feed market resulting in volatility. To put this in perspective, China has been locking up corn from the U.S., the USDA just announced another sale to the nation of 2.1MMT (83MM bushels), which eclipsed the previous record purchase by China of 1.9MMT, which happened July 2020 and this now ranks as the 2nd largest daily sale to any nations since 1977.
2. Last month on the supply front, the USDA’s WASDE report cut corn production by 324M bushels (based mostly on average yield drop of 3.8bu/acre), driving corn futures to above $5/bushels. Similarly, estimates of soybean production and stocks were cut, pushing beans past $14/bushel in nearby futures prices.
3. Also, The U.S. ports are experiencing severe backlogs, impacting vitamin availability in the short-term. This concern is due to COVID labor shortages driving higher prices in the industry.
Keep in mind that the price of our hay is still staying steady. We have outstanding growers across the country. These farmers work tirelessly to grow and offer premium hay for our customers, which in turn provides for their families. We are proud to partner with other family owned operations, and we all greatly appreciate the loyalty of our customers. To help offset an increase in your feed bill, consider feeding more hay to your animals.
Did you know? A horse should consume 1.2-2% of its bodyweight in forage per day. If your pasture grass is significantly lacking this season, or if hay is their sole forage source, that would equate to 12-20 pounds of hay per day for a 1,000 pound horse. Do you have any questions as to what type of hay or feed to provide for your horses? Give us a call! We have an equine specialist on staff as a resource for our amazing customers!
As always, we thank you for your business!
-The Horstmeyer Family and Team
