Straw price could soar even higher
Straw price could soar even higher
By Simon Wragg
STRAW prices, which are already up 60% on last year in some regions, could rise further unless demand for straw slackens, merchants have warned.
The anticipated shortfall from this years cereal harvest has been more dramatic that first thought, says the Hay and Straw Merchants Associations Christopher Trower.
"Unfortunately, we were well into harvest before the true extent of the shortfall became clear. By that time it was too late to convince farms that chop straw to bale it instead," he says.
Ex-farm prices for big bale barley straw now stand close to £35/t in the eastern regions arable heartland, £38/t in Yorks and £40/t closer to the livestock-dominated west. Overall, values are up almost 60% on 12 months ago, report traders.
Figures released this week by the National Office for Statistics highlight the extent of the shortfall in supplies.
Wheat plantings for the 2001 harvest were down 20.3% or 423,000ha (1.04m acres) while barley plantings were up by 11.4% or 128,000ha (316,300 acres), according to NOS data.
However, the increase in barley plantings was mainly spring-planted crops that were expected to have lower straw yields, potentially widening the deficit further.
The HSMA guesses wheat yields an average 2.47t/ha (1t/acre) and barley 1.85t/ha (0.75t/acre). Changes to cereal plantings last year would have seen an estimated 800,000t fall in straw production and this is without any reduction in straw yields this year.
Foot-and-mouth has done little to reduce demand. Despite large numbers of livestock being culled, surviving farms have eaten into supplies traditionally held on-farm during the period of restricted animal movements, observe traders.
"In over 40 years of being involved with straw I have never seen a nationwide shortage like this," adds Mr Trower.
The HSMA is expected to issue a statement on the cumulative downturn in supplies being drawn by its 55 members across England within the next week.
The price of straw will increase pressure on farm cash flows this winter. "Farms are going to have to be more inventive on how they use supplies, or prices could continue to climb," he warns.
Straw merchant Martin Horn from Okehampton, Devon, says he is already drawing on suppliers who normally release stocks after the year-end. "Supplies are very tight, particularly small bales. The price is crippling some farms but many say they have no alternative bedding."
Government could take action to increase supplies by cutting the 150,000-180,000t of straw designated for a power station in Cambs.
"If the government is concerned over shortages of bedding for livestock this winter it could act," suggests Mr Trower. *
STRAW
* Prices 60% up on year.
* Supplies estimated down by 800,000t.
* Supplies of small bales even tighter.
STRAW
• Prices 60% up on year.
• Supplies estimated down by 800,000t.
• Even fewer small bales available.