German feed makers predict higher prices

14-05-2010 | |
German feed makers predict higher prices

The German feed industry (DVT) has announced higher prices on the short term for compound feeds due to a shortage in oil cakes on the market.

According to DVT feed manufacturers not only face a weaker euro to the dollar, but also have to deal with shortages in rapeseed cake, an important constituent in German animal feeds.
The shortage in rapeseed cake is mainly caused by a fire in the oil mill of Bunge Deutschland GmbH at Oberrhein. This mill supplies around 25% of German use of rapeseed cake. Bunge has cancelled all existing contracts, DVT said.
As a result of these supply failures, the companies are forced to purchase expensive coverage, whereas the rapeseed cake market shows significant price jumps.
Pass on the costs
Rapeseed cake suppliers and compound feed manufacturers will have to to pass these additional costs to their customers.
For current sales contracts so-called force majeure clauses will be opened. DVT speaks of a need for adjustment between 40 €cts and some euros per 100 kg – depending on the type and formulation.
Given the shortages of rape, the association expects continued solid compound feed prices.

Dick Ziggers Former editor All About Feed