Supply for palm kernel extract in south Canterbury is beginning to tighten, as more and more farmers turn to supplementary feed because of the drought.
Palm Kernel Extract, or PKE, is an imported supplementary stock feed derived from palm oil production, which farmers can buy as a one-off, known as spot supply, or through contracts with suppliers.
One of the country's suppliers, ADM, imports and directly sells the supplement to farmers throughout the country.
Its general manager, Ross Bowmar, said the spot supply levels were beginning to strain, but farmers with contracts would have their quota met.
He said the tightening supply was likely to be alleviated in the next month or so, as shipments of the kernel arrived.
"The amount of spot palm kernel that's currently available is going to be tight for the next month.
"That's due to the spark in demand as a result of the drought and line that up with the shipping stem which is inbound, but most of that looks to be arriving in the end of March early April, which should alleviate the pressure,.
"The situation in Canterbury is obviously tight and importers are working to get their boats there as quickly as possible.
"The rest of the country however, is sitting in a pretty good position."
Ross Bowmar said farmers should call around suppliers of PKE to check options and prices available.
