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Summary
Driving Prices Up
- The ongoing drier that usual conditions in South West Victoria and South Australia are continuing to keep the prices in those regions elevated, with a flow on effect to other parts of the state and country as supplies move into those areas. Freight is adding a substantial additional cost to fodder supplies.
- Protein and cereal hay supplies continue to tighten, though new supply does continue to appear on the market as growers look to current trends and evaluate their own needs. Some exporters are continuing to release export quality hay to the domestic market and this is at a higher price due to quality.
- Demand is strong as expected at this time of year as cattle and dairy farmers look to good roughage to carry calving stock through the colder months. While recent rains are welcomed in dry areas, it will do little to build pastures before winter, and a green drought is being experience in many areas. This is exacerbated by some fodder producers holding back additional supply for their own use.
Driving Prices Down
- Conditions in Western Australia have turned around significantly in the last month with the good and steady rain more pastures are becoming available for grazing and further reducing demand. However producers are still looking to rebuild storage and ensure a steady availability over winter so prices continue to stabilise rather than drop in most cases.
- Older, somewhat lower quality fodder supplies continue to be available in the marketplace, and are being picked up by farmers looking to include them in feed mixes and fill the winter gap.
Local News
- Western Australia continues to benefit from ongoing rain events and warmer temperatures helping to rebuild pastures. However South Australia and South West Victoria continue to be dry even after some recent rains, this has not been enough to turn around pasture availability in any significant way.
- Tasmania’s dry conditions continue for most of the state and supplies are tight, though the North West does have good pasture availability. Fodder continues to be sourced from the mainland, but the process can be slow due to biosecurity measures.
- With the phase out date of the sheep live export trade now being confirmed there is some concern around the number of graziers who will move out of sheep and into cropping or away from farming with the flow on effect for the fodder industry with lower demand and higher supply.
- Buyers are encouraged to feed test and view fodder before purchase to be sure of the quality of feed.