Monday 10 June 2013

What a difference a week makes

What a difference a week of fine weather makes – silage making has been going at full throttle and even the recently drilled maize crops have started to grow. But that is not a moment too soon because everything is running about 3 week’s behind a usual season and as a result late planted crops will struggle to produce a sensible yield.

Early indications are that although the quality of silage crops will be reasonable they will be “light” and so farmers will still be hoping this summer proves a little more “normal” than last year with sunshine, rain and warmth in equal measure to encourage the growth of grass for and 2nd and 3rd cut silage crops.

Cereal crops are also a long way behind where one would normally expect them to be and with so many spring sown crops being planted this year rather than autumn sown “winter” crops, this emphasises the appearance of a late season. This will also have an impact on yields because although the input costs are generally lower for spring rather than winter crops, yields are also lower and so the impact of last year’s wet weather will be reflected in this year’s harvest output.

But it is not only the weather that has perked up a bit, so have global commodity markets which point to the potential for price rises for dairy farmers on cheese contracts in particular. In the past week, two major companies, Dairy Crest and First Milk have announced price rises for their milk suppliers on cheese contracts that will kick in next month.

There is also talk of cheese supplies tightening later in the year because it is believed less cheese was made earlier in the year following a move by processors to divert milk for cheese into other products. This could lead to shortages towards the back end of the year giving rise to optimism for further milk price rises still to come.

Whether such price rises will come to fruition is not known but at least there is reason for optimism in the cheese markets at present and let’s just hope this is also reflected in the weather continues as we move on in to the summer.


James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells

T: 01749 683381
E: james.stephen@carterjonas.co.uk

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