August 2024 Market Update

With global tensions showing no sign of easing commodity markets remain volatile.

There are still freight issues around the Red Sea/Suez Canal with vessels still being attacked. This has forced a large number of vessels to take the longer route around the Cape of Good Hope adding time and costs to ocean freight. Luckily on the other side of the world the issues around the Panama Canal have eased with water levels now back to more normal levels.

Following India’s introduction of a 50% export tax on molasses to support the local use in fuel ethanol it was expected that global molasses supply would be tight and prices may firm further, however there have been a number of developments that have countered this; 1. Better than expected molasses exports from the USA, Central America and Pakistan 2. Large European beet crop resulting in the extra quantity of beet molasses replacing cane demand with industrial customers 3. C heap Russian beet molasses being exported to countries willing to take it resulting in additional beet exports All these factors have resulted in the global cane molasses price easing slightly. This together with urea being better priced means that ED&F Man’s molasses blends are even more competitive, with winter prices now available.

The mild winter and wet weather for most of spring has led to an extremely variable forage crop across all regions. The delayed harvest has resulted in a higher proportion of older and overwintered material in clamps which is reflected in the forage quality this year. Although forage quality is variable this year, a lot of value can still be unlocked by driving good rumen function and balancing ration nutrients.
Early first cuts have shown:

• Poor digestibility at 68.6%, caused by the high fibre content
• Dry matter of 33.7%, which is almost 3% higher than last year’s first cut
• Low rumen fermentable carbohydrates (RFC)
• Low sugars at 1.7%

This sugar level does not provide the recommended level of 6-8% DM in a ration making supplementation a requirement. Firstly, RFCs are required to support good rumen function and efficiency and in turn animal production. Sugars are a great source of RFC and can help promote intakes and digestibility without increasing the risk of acidosis which can occur if too much starch is fed. It is best to provide a synchronised supply of RFCs in the form of both sugar and starch to achieve the best results, health and performance. Additionally, sugars can help increase fibre digestibility which is key with forage. It is estimated that for every 1% of additional digested fibre (NDF) can represent a 0.17kg increase in DMI and a 0.25kg lift in milk yield. On farm, results show a 17% improvement in total ration digestibility after 6 weeks by increasing sugars from 3% to 6% DM with a molasses based liquid feed.

Many co-products from other industries such as pot ale syrup, whey and draff that historically would be fed on farm are more commonly becoming unavailable to farmers due to being swallowed up by anaerobic digesters/biogas as feedstock. This equates to tens of thousands of tonnes of feed ingredients that need to be replaced within a ration.

Typically, liquid co-products on farm have a low dry matter with no consistent specification due to being a secondary product of another process. Despite this, these liquids have been utilised effectively on farms, however, the value of using a manufactured liquid feed is becoming clearer as it offers a consistent, reliable and readily available alternative to these syrups.

When it comes to choosing a liquid feed to use on farm it’s important to remember that not all liquid feeds are equal, and the cheapest liquid on offer may not always be the most cost effective. While cost per metric tonne is important, this is less crucial if it can’t be combined with:

• Year-Round Availability
• Formulation Flexibility
• Longer Shelf Life
• Less Waste
• Efficient Feed Rates
• Good Consistency & Reliability
• Enhanced Digestibility

For efficient and cost-effective production, livestock rations need to be consistent. When a ration is changed, it can take up to 2 weeks for the rumen to adapt to the new ingredients and return to optimum levels of performance. ED&F Man Liquid feeds are manufactured to a guaranteed specification and are produced to order, giving users the confidence to build a ration that can be consistent and reliable in terms of quality, nutritional value and available in load sizes to suit the customer needs. To learn more about the value of different liquid feeds or to utilise our handy liquid feed checklist when choosing a liquid feed, take a look at our website: edfmanliquidproductsuk.com/advice/