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Driving Prices Up
- Rainfall has led to repeated flooding events across northern New South Wales and Queensland. Water has damaged pastures, summer crops and on farm fodder stores. Mud is impacting stock health. Local fodder supply in the region is dominated by donations and emergency fodder relief packages.
- There are reports some transport companies are applying a 5 – 10% fuel levy. Some hay growers, who deliver locally, have indicated they will raise cartage fees by up to 50 cents per kilometre or will apply a fuel surcharge of up to 10%, to cover increased fuel costs.
- Input costs are expected to impact decisions regarding the new cropping season. Grain and hay growers will make cropping choices (grain versus hay) to increase productivity and profitability during these times of increased production costs. They will be looking to capture price opportunities available due to strong export market demand for wheat and canola.
- There is increasing demand for good quality cereal hay and vetch hay. However, supplies of both are low. Some farmers may be looking to purchase lucerne to fill the protein gap.
- With increased restocking, increased stock values and continued demand for Australian red meat, there is increased demand for fodder as more cattle are finished through feedlots.
Driving Prices Down
- Recent rainfall and mild weather has boosted pasture growth, alleviating the need for farmers to provide supplementary feed. Many growers in the southern states have begun seeding ryegrasses and other pastures to utilise soil moisture and take advantage of warm temperatures.
- Varied qualities of fodder are currently on the market. Growers with lower grade hay, particularly hay stacked outside are expected to actively trade this in the coming months.
- The quality of new season hay is being impacted by continuing rain events across most states.
- The Darling Downs and northeast New South Wales regions, in particular Lismore, has been again impacted by heavy rainfall and subsequent flooding. The ongoing damage and loss, will be assessed once property is accessible. The area is highly dependent on donations of high-quality hay and fodder to support the recovering health of stock impacted by mud and rain.
- Farmers and growers surrounding the areas of Gympie, Fassifern Valley and the north coast of New South Wales continue to coordinate hay donations to support farmers with livestock affected by the floods. Hay and silage are being donated with active fundraising being undertaken to support the high fuel costs to transport the feed into the affected areas.
- Increasing amounts of silage are being cut across the Atherton tablelands
- NSW summer coastal hay production continues to be hindered by lack of consecutive clear days to support drying and baling.
- In other regions the availability of pasture, where growth has been supported by rainfall and warm weather, will keep the fodder trade minimal, however, this is often expected during Autumn. There is growing demand for high quality cereal hay, however supply is low.
- Lack of rain in southwest Victoria, and some parts of South Australia and Tasmania, are driving some early enquiries from those looking to secure feed allotments for winter.
- Buyers are encouraged to feed test and view fodder before purchasing to be sure of the quality of the feed.