Hay prices stabilise after eight weeks of continuous rises amid tight supply

Hay prices have steadied after eight weeks of rises, but fresh cuts won’t arrive until October. See all the market details and prices here.

Hay prices have finally stabilised after eight weeks of successive rises, but fodder supplies remain tight and fresh cuts aren’t expected until October.

This was the sentiment from more than 200 farmers who gathered in Queensland for the two-day Australian Fodder Industry Association conference that attracted producers from as far west as Western Australia and as far south as Tasmania.

AFIA chairman Louis Kelly of Jerilderie in southern NSW said the dry conditions had taken a toll, and supply was short across the entire industry.

“We actually believe that while hay prices trend above grain prices, we will see more people opting to cut grain crops for fodder this year,” he said.

Mr Kelly said there were indications that prices had stabilised, but it was difficult to determine when the market would reach the current high levels.

“There’s no bell that rings when we are at the top of the market,” he said.

Alex Peacock pictured with trucks loaded with fodder at Timmering. Picture: Yuri Kouzmin

AFIA’s fodder report shows that after eight weeks of rising prices in all districts have started to stabilise. The Central West of NSW have finally stabilised. Cereal hay is making $570 to $650 a tonne, and pasture hay, $540 to $640 a tonne.

It was also the first week in eight weeks that prices stabilised at Bega, NSW, with cereal hay quoted at $640 to $760 a tonne and pasture hay, $630 a tonne to $750 a tonne.

In Gippsland, cereal hay was quoted as steady, ranging from $630 to $780 a tonne. South West Victoria, where it has been unseasonably dry, has had large convoys of fodder brought into the area. Cereal hay was quoted at $610 to $770 a tonne, and pasture hay, $590 a tonne to $700 a tonne.

Timmering farmer and fodder producer Alex Peacock said there was some fodder being stored on farm that had not yet entered the market.

“People are sitting on it to see if they have enough feed reserves for their own livestock needs, but there is still a severe shortage,” he said.

Mr Peacock said demand had started to slow somewhat. He attributed that to the high prices. Farmers were looking for alternative stock feeds, such as feed grain options, and there had also been some rain that had helped to boost pasture growth.

“We will have another cut of hay here in October, that will be cereal and oats, then the vetch will be later,” he said.

Mr Peacock said the rain this week could also turn things around.

“The rain this week is magic, we are dry enough and we are expecting another 10mm early next week,” he said.

Agronomist Frank McRae of DLF seeds at Orange, NSW. Picture: Nikki Reynolds

Agronomist Frank McRae of DLF Seeds at Orange in NSW said farmers were relying on fodder coming in from as far away as Western Australia.

“Livestock operators are looking at their options,” he said.

Mr McRae said even though there had been rain in some parts, there was no instant stock feed.

“It is a green drought, it is just a green tinge and there is nothing substantial yet,” he said.

Mr McRae said the cooler temperatures and frosts in June and July had also slowed pasture and crop growth.

“We have had some heavy frosts of -3 and -4 degrees,” he said.