Bushfire impact threatens already limited hay supplies

Between drought and bushfires, the Australian hay market is copping a beating.

Help on its way: A Need For Feed convoy provides critical relief to Buchan after the bushfire. Picture: Mark Stewart

AS A result of the Indian Ocean Dipole and tinder-dry vegetation along the eastern seaboard of Australia, the hay market will need to adjust to the new trade flows brought about by bushfires.

Fires have impacted agriculture much earlier this year as the fire season began in September and October when fires between Lismore and Tenterfield in northern NSW burnt livestock properties.

Since then, fires spread to the Richmond, Clarence and Hunter valleys.

At the time some expensive old-crop hay was diverted from the northern drought demand and transported into these reg­ions.

But since then the fires have become much more devastating, causing greater impact on properties and threatening the already stretched hay supplies.

It is estimated that 6.3 million hectares have been burnt nationally but most of this area is either state forests or national parks.

Impacted regions normally sustain 9 per cent of the nat­ional beef herd and 12 per cent of the sheep flock, estimates suggest.

Once fires are under control, authorities will assess properties in the Upper Murray, East Gippsland, Monaro, Bega Valley and Shoalhaven fire regions.

Some initial reports suggest the destruction has not been absolute; with surprisingly low livestock losses and even some haystacks spared from the flames.

While weaners from these areas would normally be sold at this time of the year, it appears there will be livestock either retained in the area or agisted elsewhere and that additional fodder will be needed until fresh pastures can be sown in autumn.

Hay donated to the fire impacted farmers through the Victorian Farmer’s Federation and community organisations will fill a critical feed gap.

Trucks have started to reach Bairnsdale but the bulk of the hay needed for this disaster is yet to appear.

Through the generosity of hay growers and hay carriers, much of this hay is donated and is not directly altering the market for hay.

In reality, there will be a knock-on effect of the fires, as they will draw additional demand on hay stocks that are needed for the ongoing drought demand in NSW and Queensland.

Trade of hay is relatively slow, but the execution of deliveries of contracted hay is rapid.

A rate-limiting factor is availability of trucks, especially for the long distance legs to northern NSW and Queensland.

Convoys of road trains heading north over the Murray River are reminiscent of the interstate hay volumes of 2018. Well-timed rainfall and favourable grain yields have given rise to wide spread baling of ­cereal straw.

Keen to capture their investment in baling costs, sellers have been actively competing, lowering prices and increasing the volume of straw traded.

In the Riverina straw is now selling at $130 to $140 a tonne ex farm while typical prices in the Mallee are $100 to $120 a tonne.