National Summary
- Across the nation this week there was a general trend of an increased demand for purchased fodder. This lines up with the start of winter, drying off of pasture in the North and cool temperatures with less feed in the South.
- Most hay prices remained steady this week despite the rise in enquiry and orders. Reports indicate that many buyers are resisting any price increases due to limited cash flow.
- Good pasture and silage availability continues to delay any immediacy or need for purchased fodder in the North but there continues to be indications that in some regions supply could be tight later in the year.
- The South still holds the strongest demand for fodder around the country and recent rainfall has done little to slow this. While a lot of hay is yet to be moved in the South a good percentage of it is spoken for. Based on this we recommend getting onto your trusted supplier early if you have a known need for fodder in 2016.
Northern Australia
- Along the coast there continues to be limited trading or even interest in purchased fodder at this stage due to plentiful pasture availability. Further inland however, demand is on the up with reports indicating more hay moving this week after a long period of limited trading.
- While some buyers now appear to be planning ahead as the Northern regions continue to dry off, many are still restricted by cash flow, and are feeding in a hand to mouth manner. This in holding the market back from any major jumps in trading or rises in price.
Southern Australia
- Demand for hay has again seen an increase this week with buyers looking to compensate for dwindling silage or prepare for winter. Limited price increases occurred this week however with reports suggesting many buyers have reached their price limits and are now investigating other feed options.
- Comments over tight supply for purchased fodder continue to circulate in Victoria and Tasmania with a lot of buyers now forced to source hay from interstate.
Western Australia
- There is now strong demand coming from a number of regions of Western Australia with reports indicating hay suppliers are struggling to keep up with orders.
- This push for purchased fodder has also resulted in an increase in prices this week. Comments from hay traders suggest that further increases could see a number of buyers pushed out of the market.
- Reports suggest that many farmers that rarely have any need to buy hay are likely to need extra fodder this year following the dry season and last year’s poor crops.
Regional Commentary
Atherton Tablelands
- Farmers weaning cattle are keeping the hay market going this week, with small volumes of hay moving again after a prolonged lull. Prices are yet to show any obvious changes however.
- Reports indicate that despite generally good availability of pasture at the moment there is some concern over water availability for irrigation.
- Growers are reporting that good volumes of Rhodes grass are being made in the region although, due to on and off rainfall, quality is variable and careful inspection is recommended when purchasing fodder.
- Most predict that the market won’t show any drastic changes in the foreseeable future as reports indicate most farmers have a good supply of hay in sheds already.
- Pasture hay: +/-$0 ($300 to $400/t). Prices remain steady this week with the large price spread reflecting the increased cost of producing irrigated hay.
Darling Downs
- The steady increase in demand seen last week continued in the Downs this week with farmers begging to plan ahead and fills sheds for winter.
- Other contributors to the increase in demand for fodder are farmers weaning cattle, which has begun again throughout the region.
- Despite the increase in demand prices have remained steady this week after last week’s price rise. .
- There have been some comments that there may be a tight supply for hay, come winter. As long-term contracts are being favoured by sellers, we recommend contacting suppliers early if you have a known need for fodder over the coming months.
- Good quality millet hay is available and trading slowly however lucerne and cereal hay are reportedly in limited supply.
- Cereal hay: +/-$0 ($300 to $340/t). Prices for cereal hay remain steady this week however there are limited amounts available on the market.
- Lucerne hay: +/-$0 ($430 to $500/t). Prices remain steady this week.
- Straw: +/-$0 ($140 to $180/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($260 to $310/t). Prices remain steady this week.
North Coast NSW
- The region’s hay market is yet to get going with a prolonged and above average season for hay and silage production, as well as pasture availability hanging around, there continues to be a positive outlook and lack of urgency from farmers.
- The slow market and lull in trading of fodder is expected to continue until winter.
- Due to widespread summer rainfall, there have been some issues with hay quality. Careful inspection of fodder upon purchase is recommended to ensure quality.
- Growers continue to focus on baling summer crops such as sorghum and millet.
- Cereal hay: +/-$0 ($260 to $310/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($300 to $350/t). Prices remain steady this week.
- Straw: +/-$0 ($110 to $130/t). Prices remain steady this week.
- Pasture hay: +/-$0 (130 to 180/t). Prices remain steady this week.
Central West NSW
- While a demand for fodder is on the increase, there appears to still be only limited volumes trading with many buyers behaving in a hand to mouth due to tight cash flow.
- Reports indicate that there are some concerns over a tight supply for hay in the region come winter.
- Reports also suggest that the majority of remaining cereal hay for sale is weather damaged. Therefore, we recommend careful inspection of fodder before purchase.
- Cereal hay: +/-$0 ($200 to $260/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($270 to $350/t). Prices remain steady this week; however comments suggest that due to a steady increase in demand a limited supply, lucerne prices could increase in the coming weeks.
- Straw: +/-$0 ($130 to 150/t). Prices remain steady this week.
- Pasture hay: +/-$0 N/A. There are no reports of pasture trading.
Bega Valley
- With good silage and pasture availability holding back an immediate need for purchased fodder, many farmers continue to sit out of the hay market.
- Despite the apparent good volumes of hay being made in the region, plentiful rainfall has resulted in some quality issues. AFIA advises careful inspection when purchasing fodder.
- There continues to commentary regarding some farmers concerns over the long-term availability of fodder come winter as pasture runs out. AFIA advises sourcing fodder early if you have a known need for hay in the coming months.
- Cereal hay: +/-$0 ($230 to $280/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($330 to $380/t). Prices remain steady this week.
- Straw: +/-$0 ($160 to $180/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($240 to $260/t). Prices remain steady this week.
Goulburn/Murray Valley
- An increase in demand was noted in the region resulting in another price rise for cereal hay this week.
- Tight supply is restricting any major increase in trading with most reports indicating that there is limited fodder left on the market within the region.
- Tight cash flow positions continue to prevent a number of dairy farmers from taking a forward position on hay however, with most restricted to feeding hand to mouth.
- Reports indicate that there continues to be large volumes of hay within the region moving to other parts of Victoria, further putting strain on supply locally.
- Cereal hay: +$5 ($200 to $260/t). Prices rose this week.
- Lucerne hay: +/-$0 ($300 to $340/t). Prices remain steady this week.
- Straw: +/-$0 ($100 to $150/t). Prices remain steady week.
- Pasture hay: +/-$0 ($150 to $170/t). Prices remain steady this week.
Gippsland
- Continued strong demand in the region’s South resulted in no further price rises this week after increases for cereal hay and lucerne last week.
- Reports indicate that the price point is forcing some buyers out of the market; instead they are considering other feed options from grain to almond hulls.
- Demand for lucerne is particularly strong with most farmers having reached the end of silage stocks.
- Some rainfall has greened up the Southern Gippsland and provided a more positive outlook for dairy farmers. However a lack of hay and pasture within the region continues to cause issues.
- Reports of over the fence trading continue as some farmers look to secure fodder for later in the year at more reasonable prices.
- Looking to East Gippsland, including the Macalister Irrigation District, there is less urgency around purchased fodder with good pasture still available.
- There has been some strain put on hay supply to the East however with such demand else ware.
- Cereal hay: +/-$0 ($250 to $320/t). Prices remained steady this week.
- Lucerne hay: +/-$0 ($350 to $410/t). Prices remain steady this week.
- Straw: +/-$0 ($130 to $200/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($160 to $240/t). Prices remain steady this week.
Southwest Victoria
- This week the Southwest of Victoria saw a continued strong demand for purchased fodder. However despite comments of dwindling supply, no changes to price have been noted yet.
- This is expected to change as many farmers and hay traders have predicted that supply will go down to the wire this winter.
- With silage stocks running low a stronger focus on purchasing lucerne is evident with good volumes moving. Vetch is also available for $360-370/t.
- Cereal hay: +/-$0 ($250 to $280/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($340 to $365/t). Prices remain steady this week.
- Straw: +/-$0 ($120 to $150/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($180 to $220/t). Prices remain steady this week however there is little to no pasture hay available in the region at present.
Southeast South Australia
- A further increase in demand was noted this week in the region, however prices remain steady without notable change.
- Increased enquiry is reportedly coming from Victoria as supply in the neighbouring state looks to run low later in the year. Long distance freight costs are restricting major increases for growers.
- Within the Southeast, reports indicate that a number of farmers have stored enough hay for the winter ahead and are now sitting out of the market. This is in some instances helped along by offloading cattle with good beef prices.
- Reports indicate that the majority of buyers that are yet to fill their sheds in the region, are most likely buying hay in a hand to mouth manner and are restricted to doing so by cash flow.
- Cereal hay: +/-$0 ($210 to $250/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($250 to $340/t). Prices remain steady this week.
- Straw: +/-$0 ($110 to $130/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($160 to $240/t). Prices remain steady this week.
Central South Australia
- The hay market in Central South Australia remains at a near stand still with little hay moving about the region.
- The export market on the other hand continues to see hay trucks moving throughout the region, however the majority of this hay was contracted months ago and is not having a major impact on domestic trading.
- Reports indicate that we could see some unexpected changes in demand in the coming weeks as buyer currently focussing on fire recovery re-enter he market.
- Cereal hay: +/-$0 ($200 to $250/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($280 to $320/t). Prices remain steady this week.
- Straw: +/-$0 ($110 to $120/t). Prices remain steady this week however given the impact of the fires there may be shortages of straw into 2016.
- Pasture hay: N/A. No reported trading.
Southwest Western Australia
- Strong demand continues to come from the Southwest and surrounding regions with dwindling supply being put under pressure from a large amount of interest.
- This further increase in demand has resulted in a price rise for cereal hay and straw this week.
- Reports indicate some growers are asking for a further $10/t but the rest of the supply chain has so far resited this.
- Good summer rainfall has been received in some areas in the Southwest and is sustaining pasture, but some other farmers are reportedly having to purchase fodder for the first time in a number of years.
- There have been comments that indicate further price increases domestically could put pressure on the export market in the future.
- Fodder continues to be donated and delivered to fire affected areas South of Perth.
- Cereal hay: +$20 ($250 to $310/t). Prices rose this week.
- Lucerne hay: +/-$0 ($470 to $520/t). Prices remain steady this week.
- Straw: +$10 ($90 to $130/t). Prices for straw rose this week. Reports indicate mostly barley straw is trading.
- Pasture hay: +/-$0 ($160 to 200/t). Prices remain steady this week.
Northwest Tasmania
- Another week of consistent high demand with no let up in terms of prices this week for the region.
- There are large volumes of hay being moved throughout the state, however reports indicate that a limited amount is still available for purchase. If you have a known need for fodder in 2016 contact your trusted hay supplier as soon as possible as long-term contracts are being favoured.
- We continue to hear reports of hay being offered at prices that are generally considered unviable to anyone with a commercial focus. This is typically for small parcels of hay for lifestyle usage however it is having a distorting impact on the market.
- Silage is available and is trading at around $450-500/t.
- Cereal hay: +/-$0 ($250 to $300/t). Prices remain steady this week.
- Lucerne hay: +/-$0 ($335 to $370/t). Prices remain steady this week.
- Straw: +/-$0 ($170 to $200/t). Prices remain steady this week.
- Pasture hay: +/-$0 ($250 to $280/t). Prices remain steady this week.