Fodder reserves take a dive, farmers encouraged to make hay

A spike in hay demand has used up much of southern Australia’s hay stores and analysts are predicting a tight trading season.

Hay prices are starting to edge higher as fears fodder reserves have dropped to levels not seen in years.

A spike in demand brought on by the tight season has used up much of southern Australia’s hay stores and market analysts are predicting a tight trading season ahead.

FeedCentral managing director Tim Ford said he expected a surge in demand for hay and encouraged those who could to make it this spring.

“The big message is that the Australian hay industry makes about 10 million tonnes of hay annually, most of it in a 90-day window, but demand for hay is year-round,” Mr Ford said.

“The demand for hay will be there – we’ve used the 2023 crop and even the weather-damaged 2022 stores are gone.”

While prices varied from region to region, and for differing qualities, cereal hay was making $300-$350/tonne, vetch about $350/tonne and lucerne more than $400/tonne, though this would go up if spring rain failed.

In its analysis of the hay market for Dairy Australia, the Australian Fodder Industry Association said pasture feed availability in the southern states continued to rebound.
“However there is strong feeling that a run of warm days will shut off the growth as there still remains a moisture deficit and pastures have little to pull from,” the AFIA analysis said.

“As such supply remains constrained and in high demand, requiring the ongoing shipping of fodder into the region.”

Large square bales of hay in storage. Picture: Zoe Phillips

The AFIA report said the start of hay production in Queensland and NSW would normally push prices down as new supply came online and demand eased, but hay was only being supplied from these areas to contracted end users or kept for export markets, which was keeping supplies tight.

“The normally high hay production areas of Victoria and South Australia are looking to have a less than average production yield this season,” AFIA said.

“This combined with the need to refill depleted hay stores and meet the expectations of the export market is leading to an uptick in prices in preparation for a perceived shortfall in supply.”

Kerang hay grower Col Radcliffe said there would be high demand for quality hay.

He said rain was needed soon for his own hay crops to reach their full potential.

“From everybody I’ve been talking to, it seems like hay production will be down 30-40 per cent,” Mr Radcliffe said.

“I believe there’s going to be more requirement for hay, including for the growing feedlot industry.

“If you’ve got sheds that don’t have hay in them, I’d fill them. If you can put quality hay in the shed, it’s always saleable.”