Recent dramatic and unprecedented changes in feed ingredient costs have caused feed price increases never seen before with Triple Crown Feeds. Unless you are a farmer and buy or sell grain, the press does not cover the agricultural sector very well and what is happening with the costs of grains, fiber ingredients, vitamins and minerals. Some feed companies compensate for these increased ingredient costs by inserting inferior quality ingredients that are lower in cost on a regular basis. This often results in the feed failing to maintain weight and not performing to your expectations. A good article on our website explaining least cost formulations can be found at http://www.triplecrownfeed.com/news-fixed-vs-variable-formulas.php In some cases the feed actually changes color and smell. Triple Crown Nutrition does not change formulas or use inferior ingredients and holds the health of the horse and the trust of the owner in high regard.

There are three main factors effecting horse feed prices today. The first factor is government subsidies for ethanol. As the cost of oil increases, it even furthers the profitability and demand for ethanol. Increased corn planting takes acres away from other grains and hay so even huge harvests like we had in 2007 has little impact on corn prices. The reduced acreage for other products has the effect of reducing supply and also increases the cost of those commodities. Reduced hay acreage and a severe drought in many areas of the country are largely responsible for the high cost of hay. The problem doesn't seem to be getting better as it is estimated that 25% of the 2008 corn crop will be processed for ethanol production.

The second factor is exports and the international market. Emerging economies in China and India are requiring more agricultural inputs. They are eating more grain based foods than they have in the past. This increased demand for other agricultural products has also dramatically affected vitamins and minerals that for years were very stable in cost. Wheat supplies in the United States have been adequate, but drought conditions in other wheat producing countries have driven wheat costs to historic levels.

The third factor is market speculation. As the stock market becomes more and more volatile, investors and hedge funds are investing heavily into the agricultural commodity market driving prices even higher. A good example is the oat market. Canada produced more oats in 2007 than they have in over 25 years, however, the cost of oats today are higher than they have been in recorded history. The primary reason is fund buyers who invest in the market just to drive up the price in order to make a profit. Normal supply and demand models no longer seem to have an effect.