Hay demand intensifies

There’s been a stark turnaround in hay and fodder prices this season compared to last. See how fast prices have risen.

Hay and fodder prices are tracking at hundreds of dollars a tonne higher than at the same time last year.

The metrics that have made prices for cereal hay surge to $500 a tonne include wet conditions at sowing and the dry outlook with the Bureau of Meteorology forecasting El Nino.

Victorian Farmers Federation grains group president Craig Henderson said during a recent trip to Dubbo, NSW he counted 20 hay trucks, all heading north.

“Good quality hay is as much as $500 a tonne, landed on-farm at Goondiwindi,” he said.

“This time last year, we couldn’t give it away,” he said.

The higher prices, low indicators for both lamb and cattle and the forecast of dryer conditions have created a perfect storm for demand.

Oaten hay is currently $270/tonne, an increase of around $100 on the same time last year. In contrast, the Eastern States Trade Lamb Indicator is sitting at 466c/kg, a drop of 288c/kg compared to 2022.

“The last two years have been too wet to make hay; this is why many haysheds are empty,” Mr Henderson said.

However, he said prices may have peaked at current levels due to the suppressed sheep and cattle market.

Fodder is in demand in northern NSW and Queensland. Picture: AAP Image/Morgan Sette

The Australian Fodder Industry Association quotes prices of cereal hay from $300 to $340/tonne in the Bega Valley and lucerne up to $460/tonne.

In the Goulburn/Murray Valley, cereal hay is up to $350/tonne and lucerne hay is $460/tonne. Gippsland is recording prices of $360/tonne for cereal hay and $440/tonne for lucerne.

AFIA director and treasurer Frank McRae of Orange in NSW said a lot of fodder was going to northern NSW and Queensland.

“People are looking for whatever they can get, and there isn’t much lucerne around,” he said.

Mr McRae said 2022 was a disaster for haymaking.

“It just rained and rained, you couldn’t get onto those paddocks, and it wasn’t conducive for haymaking,” he said.

Mr McRae said the outlook for next year was also concerning, given the current urea shortage. “Everything is starved for nitrogen,” he said.

A truck load of Hay.

Rupanyup grower and Matthews Brothers harvest contractor Brett Matthews said he expected the hay harvest in Victoria’s Mallee to start early this year.

With dry conditions forecast to set in, he hoped to cover his business’ maximum capacity of 12,000 hectares after a “wet and challenging” two years.

In tandem with domestic demand, high-end fodder was strongly supported on the export market, Balco chief executive Rob Lawson said.

However, a large carry-over of lower grades from last season meant prices for low-grade hay would likely drop back about $30/tonne on the export market, Mr Lawson said.