Fodder: Prices track steadily despite flurry of haymaking activity

Fodder prices are tracking steadily despite plenty of hay currently being made. See what’s driving demand so far this spring.

Prices continue to track steadily for hay and fodder despite a flurry of activity in the paddocks to bale barley, vetch and lucerne.

After the October washout last year, stocks have depleted, and this season is emerging as a catch up opportunity.

Dairy farmer, Phil Ryan, from Bega on the South Coast of NSW said value for money had improved, but prices were still high.

“There’s still a lot to be cut, and I’m hoping that as more becomes available, the prices will come down,” he said.

Returns for quality cereal hay were around $300 a tonne in his area, and he said it was encouraging to see more options on the market.

Yet continuing dry conditions were putting pressure on producers.

He has measured 45mm of rain in the gauge for October, the best month for 2023.

One of the biggest imposts in securing fodder was freight. Most of the fodder destined for the South Coast was sourced from either the Monaro or the Riverina. This amounted to a freight cost of around $70 to $80 a tonne.

The latest Australian Fodder Industry Association hay report shows the dry conditions in northern NSW and Queensland are pushing feed prices higher.

It also cited demand from feedlots in the north of Australia.

Cereal hay is making $250 to $300 a tonne in the Goulburn Valley, while lucerne is tracking up to $400 a tonne and straw $135 a tonne in this area.

In southwest Victoria, cereal hay is making $330 a tonne and pasture hay $280 a tonne.

AFIA secretary Phil Snowden farms near Tocumwal and said dryland hay yields in his area were anticipated to be lower.

“We need to see a decent cut because there are very few reserves around,” he said.

Even though there has been more hay cut this year, he expected prices would remain stable given the depletion of stocks from last year.

Jason Palmer of Nanneella is pictured in his feedlot with son Sam, 2. Picture: Zoe Phillips.

Jason Palmer of Nanneella said he was hearing of good returns for vetch hay with ranges of $280 to $320 a tonne or $350 a tonne delivered.

“The quality is not too bad, and I don’t think there were many people caught (out) by that rain we had a few weeks ago,” he said.

Mr Palmer said lucerne prices were hovering at around $400 a tonne, and there was demand from both livestock producers and chaff mills.