8 October 2012

1 minute read

Average yield is predicted to continue to increase to 6,394 litres in 2012. This is in contrast to the decline in cow numbers, which are expected to fall by 0.8 per cent in 2012 and a further reduction of 0.7 per cent in 2013.

The above estimates for 2012 and 2013 do account for the substantial impact of drought in the US and some EU member states has had on grain production leading to recent abrupt increases in feed prices.

In areas affected by the drought, farmer's dependant on purchased feed will see input costs rising while those who utilise own grown feed will face difficulties with growing grain, grass growth for grazing and amount of silage for winter and its quality.

Although wholesale prices over the first five months of 2012 have been down on 2011 figures due to greater supplies, the trend is reversing and prices are on the increase.

SMP is expected to lead the way in production growth with a 9.3 per cent increase in 2012 and a potential 10.7 per cent in 2013 with China and North Africa increasing their import demands significantly recently.

While conditions for farms across Europe have been difficult, forecasts suggest that growth is expected. However, this winter will be key to whether production forecasts in 2013 will be met.

TheCattleSite News Desk