Demand for hay could see prices hit $700/tonne

Demand for hay could cost producers up to $700 a tonne as supplies dwindle. And some dealers are reneging on deals, where feed has been promised and then not supplied.

Intense demand for roughage is creating a fraught market place for hay trading as the scramble to buy feed heats up with cold weather.

And one agent believes prices could reach $700-800 a tonne as desperate producers struggle to find roughage.

The Weekly Times has been told that some hay dealers are reneging on deals, where feed has been promised and then not supplied. It is then being offered at a higher price.

Nutrien Euroa branch manager Russell Mawson said hay offered for sale at the moment at $220 a roll, with three or four rolls to a tonne and freight added, showed the figures quickly soared close to or even above $700/tonne.

“It’s all getting a bit ugly,” Mr Mawson said.

Nutrien Euroa branch manager Russell Mawson is working hard to find hay for his clients.

“It’s a very disappointing period where a handshake deal is not worth anything.”

Some hay was being offered on Facebook marketplace, but he said messages sent to these vendors were often not returned and if they were, he was then told that the hay was over subscribed.

Mr Mawson has been buying hay from Willow Tree in northern NSW for clients as well as Dubbo, NSW, and more locally near Kerang and said it was a constant battle to find supplies.

He said even with wet weather in the next month, a volume of feed would not be enough to stem the need for feed.

“There might be a bit of green pick for sheep but cattle need roughage and it’s very hard to buy,” he said.

Local Ag is the trading arm of Feed Central, and its south-eastern Australia regional manager Alex Smith said producers buying fodder needed to deal with reputable businesses to avoid problems.

Mr Smith said he had heard of “horror stories” of hay trading deals gone bad.

“It’s a key point that as desperate as things are, producers should know what they are buying,” Mr Smith said.

Supplies of hay and straw are dwindling, leading to very strong demand.

“Buyers should have a contract, and a Feedtest to know exactly what they are getting.”

While rain in some areas had seen a slight tail off in interest, Mr Smith said demand was still very strong for hay.

“That rain will not change things in terms of a lot of feed until late winter at the earliest,” he said.

Prices for hay had increased, he said, simply due to increased demand but also due to the bigger distances needed to transport fodder from areas further afield.

“We have hay going from south-east Queensland to Victoria, and from northern NSW to South Australia,” Mr Smith said.

There was also demand for straw, with some livestock producers buying standing stubbles of maize crops just harvested, to provide a source of roughage.