Straw market starting to kick off

With harvest 2019 progressing well at this stage, prices of winter barley straw are beginning to emerge onto the market.

This year’s harvest got off to a strong start however recent broken weather has slowed harvest progress. It is difficult to get a complete picture of where straw yields are at the moment as unsettled weather has meant that a lot of the straw in the south of the country has yet to be baled. However early reports point to reasonable yields and high quality.

It is important to remember that there is generally a large variation in prices between different regions of the country, with prices lower in tillage stronghold areas where supply is higher.

Prices represented below are standard in field prices and may not apply to long-term customers. Straw is being chopped around the country this year, with these farmers resisting lower prices and opting to chop instead.

We caught up with farmers in different areas to get an overview of how trade is going. Volumes sold to date are low, with the market yet to really open up.

East

One Kildare farmer has stated that winter barley yields are up slightly this year, averaging 3.2t/ac compared to 2.9t/ac last year.

Regarding straw, they say all all have been sold. This is mainly due to the fact that Monaghan Mushrooms purchased a lot of 2018 reserves and the IFA have already agreed a price of €85/t for wheaten straw (delivered) with Monaghan Mushrooms for this harvest.

The Kildare farmer added that the demand for straw is beginning to grow, but a lot of his stock sold in August.

The cost of straw is varying with 8x4x3 square bales making around €45 with round bales selling between €28-€30. Both prices include delivery (approximately 100 miles). In the field 8x4x3 bales are making around €30 and round bales are making approximately €18, according to the Kildare man.

The farmer has an established customer base in Northern Ireland, where demand has stayed consistent with last year.

North-East

A farmer in Co Louth outlined how his winter barley crops looked great, but ended up disappointing this year, only yielding on average between 3 to 3.25t/acre.

The Louth farmer added that he had 25 bales left over from last year, which were sold to mushroom processors. Demand is beginning to pick up with in-field prices for 8x4x4 making €35 to €40. The farmer added that a lot of his straw goes to Co Monaghan and isn’t sold locally.

Midlands

A Co Laois farmer stated “In some places yields are back. There are disappointed farmers, with some losing 0.75-1t/ac. Overall you have some good and bad yields, averaging between 3.5 – 3.75t/ac.”

In relation to straw reserves the Laois farmer said no straw was left over from last year in his area.

“Regular customers purchase straw every year. Demand is high especially from Northern Irish farmers, however straw isn’t likely to reach the same price that was witnessed last year,” he said.

The Laois grower is hopeful that prices will stay solid, with round bales making €17-€18 in the field. If prices drop to €15 or lower he believes chopping the straw into the ground may be an option.

East

A farmer in Co Meath said that yields this year are good in general averaging out at around 3.5 to 4.5t/ac.

In relation to prices, 8x4x4 square bales are making anywhere from €40 to €45 in the field.

The Meath farmer added that there has been a similar interest and demand for straw in both North and South, also from repeat customers

South-East

According to John Murphy (IFA Grain chairman for Co Wexford) “winter barley yields are looking good this year, averaging between 3.5 to 4.5t/ac with yields up 0.5t/ac on last year.”

The Wexford grower added that no straw from 2018 is left on the farm. In-field prices vary with round bales making €15 to €20 depending on location, 8x4x3 making €35 to €40 and 8x4x4 selling for €45 to €50. An additional €3 can be added on for delivery within a 10km to 15km distance.”

Furthermore, John stated that a lot of farmers have said that if they don’t receive at least €15 for round bales then they will plough it back into the ground.

“With high quality crops produced, both dairy and beef farmers should be looking for more home grown barley to be incorporated into their feeds and rations. Merchants should support more home grown produce being incorporated in feed.” he said.

According to John, only a third of the straw has been baled to date. There is a strong demand from Northern Irish farmers, as five farmers have contacted him already, and straw is constantly moving up and down the road.

North-West

According to a Donegal farmer, “Yields are back slightly. It hasn’t been the harvest that was anticipated, with average yields between 3.1 to 3.7t/ac.”

Early prices in the field are €18 to €20 for round bales and 8x3x3 varying from €24 to €27. The Donegal grower is hopeful that prices will remain solid this year.

Demand has been steady from regular customers. However, the Donegal grower has noticed that; “Some farmers are holding back on purchasing straw due to market prices and the vulnerability of the beef market at present.”