Balco unveils plans for $15m-plus hay processing plant at Monarto

Hay processor Balco will invest more than $15m in a new facility at Monarto, creating dozens of jobs, as it looks to capitalise on a surge in global demand.

Balco Australia chief executive Rob Lawson. Picture: Ben Clark

Hay processor Balco Australia will invest more than $15m in a new facility at Monarto and open a head office in Adelaide as the company looks to capitalise on a surge in global demand for Australian produce.

Backed by major shareholder Shanghai Yanhua Biotech, Balco has secured a 157ha greenfield site for the new processing and storage facility, which will add 100,000 tonnes of processing capacity to the company’s network.

It will become the company’s fourth processing plant in Australia and cement Balco’s position as one of the country’s largest exporters of oaten hay.

Balco chief executive Rob Lawson said the investment came amid a “major growth phase” for the company.

“There is strong demand for high quality Australian hay across the world and we’re looking to capitalise on the opportunity,” he said.

“We’re on track to sell 270,000 tonnes of oaten hay this year, up from 190,000 tonnes last year.

“With the addition of a Monarto facility and continued expansion of our other existing plants, our future annual processing capacity will extend to 400,000 tonnes.

Balco’s Bowmans hay plant, west of Balaklava. Picture: Supplied by Balco

“Dairy industries across Asia seek Balco hay to feed their cattle – from Japan and China through to emerging markets in Vietnam, Indonesia and the Middle East. We hold a positive outlook and we’re investing for the long term to position Balco as a leading supplier to the global agriculture industry well into the future.”

The new facility at Monarto is expected to create more than 20 jobs in the region once it becomes operational in about two years.

Mr Lawson said it would enable more growers in the South East to add hay to their crop rotations.

Meanwhile, Balco is also looking to consolidate its administration and management operations to a new head office in Adelaide.

As part of this transition, the company’s existing head office in Balaklava will be closed, along with its current office in Adelaide.

Most of the 20 staff working at the Balaklava site will be offered the opportunity to relocate to the new Adelaide office or the company’s Bowmans processing site. The company said a small number of Balaklava-based roles would be made redundant.

“Our field teams will continue to work closely with our growers in the region and we will be expanding our Bowmans office,” Mr Lawson said.

Balco operates three processing facilities at Bowmans – 15km west of Balaklava – Brookton in WA and Raywood in Victoria, employing a total workforce of 150.

Last November the company and Chinese partner Bright Farming signed a 10-year-deal worth$100m to supply oaten hay to China, while earlier in 2023 it expanded into Victoria with the $15m purchase of the Raywood facility.