Silage Trends and Practices
The European silage market is currently facing a number of trends and challenges:
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The end-user market is highly fragmented, although the number of farmers is expected to reduce.
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Farm sizes continue to increase in Western Europe, creating the scale of heavy equipment and investment to potentially adopt clamp silage.
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Consolidation of film producers, wrapping machine suppliers, contractors and farmers throughout the silage film value chain is expected in the next 5 years.
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End-user markets are influenced by farming subsidies and relative prices of cattle and milk, as well as economic benefit of specific ensiling technologies.
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Silage stretch wrap is capturing market share from alternative technologies of silage film for clamps and bags, or silage storage in silos. Rate of conversion reduces as farms get bigger.
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Concerns about waste plastic film on farms are triggering regulatory pressures in the UK and other European countries, potentially leading to more stringent waste management regulations.
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Oil price volatility is triggering pricing pressure on resins and subsequent films, creating value chain disruption.
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Developing the market in less established regions of Eastern Europe - e.g. Poland and Russia. For example - European subsidies on milk production are shifting east, and will act as potential growth catalysts.
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Establishing the new application area of haylage, acceptance by the horse owner market, and setting the standards from haylage production, to wrapping and feeding.
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