Scottish farmers have already endured one of the worst summer/autumn harvest periods in recent years resulting in record-breaking prices for quality fodder and, to add further insult to injury, concentrate feed costs are also set to rise.
This week, the country’s largest producer of wheat dark grains – Vivergo Fuels, based in Yorkshire, which buys feed-grade wheat to process it into bioethanol and protein rich stock feed – closed, due to the fall in bioethanol prices, caused by UK government’s inaction on renewable transport fuel obligations, it claims. 
Hence, the company took the decision to close and bring forward its plant maintenance work to lessen the impact on the company’s profitability.
Add to that Diageo’s announcement to close its dark grains plant, Dailuaine on Speyside, early in 2018 and Invergordon, which is set to cease production at the end of this year, and there is real pressure on feed manufacturers to find an alternative protein. 
“Sourcing a palatable feed source to replace dark grains is going to be big issue for the livestock industry when the product could comprise 28-32% protein,” said Robb Milne, commodities trader for Harbro.
“As soon as the news broke of the Vivergo closure, the price of dark grains jumped £25 per tonne overnight, and now you just can’t get any large tonnage anywhere in the UK.
“There are alternatives, but even they have increased in price with rape meal up £5-£10 per tonne and soya rising by a similar amount,” added Mr Milne.
Finding a substitute protein also means rations have to be reformulated with many of the alternatives containing less protein or being less palatable.
Graham Bruce, managing director at Ringlink Scotland, based in Laurencekirk, added his concerns but pointed out the co-operative had not traded any dark grains over the past month with the demand for distillers-based products having fallen significantly over the past year due to price rises.
Instead he said, sourcing good quality straw is more of a concern to his members, with fields of wet straw still lying to be baled.
“Straw prices are putting a lot of stress on our members with good quality feeding straw trading at up to £150 per tonne delivered depending on the area, and becoming increasingly difficult to find. You can still buy straw at £50-£60 per tonne ex-farm but at lower quality. We are also having to buy in straw from England,” Mr Bruce said pointing out that prices could well have peaked, with many farmers switching to alternatives such as sand, wood chips, sawdust and even paper. 
“Farmers are also being very cautious with supplies and some are selling cattle earlier than they normally would rather than buy in straw at extortionate values.”
On a more optimistic note, there is still reasonably priced fodder available to buy, with last week’s sale of 1225 bales at Aberdeen and Northern Marts’ Thainstone Centre recording average prices of £16.80 per bale for inside barley straw with outside straw valued at £11.40; haylage to £10.50 and silage to £11 per bale.
These prices compare to Harrison and Hetherington’s crop sale at Carlisle, on Monday, where round bales of barley straw sold at £31, £130, £125 and £106 per tonne; round bales of wheat straw sold to £25 for mini hestons and £115 and £116 per tonne. Small square bales of hay sold at £4 per bale.