Driving Prices Up
- Late spring rain hampering hay production in the southern parts of the country in particular Western Victoria where minimal rain fell during the growing season is seeing a replica of last season. This region produces hay for the Western Districts and Gippsland, farmers will have to look else where if the Mallee and Wimmera cannot provide a quality product this year.
- A shortage of new season vetch which is favored by farmers because of its protein content could see more lucerne traded to fill this gap in the coming year.
- Opportunist trade continues, where farmers can store hay, they are seeking out any available good quality fodder from previous seasons.
- The cost of production is set to increase in the coming year with fertiliser, chemical and fuel all earmarked to climb dramatically in price.
Driving Prices Down
- New season prices are not expected to increase dramatically as many farmers wait now to see how much is produced and the quality of new season hay before committing.
- A significant amount of last season’s weather damaged hay is on the market at a reduced price. With the potential for more lower grade hay again this season, growers ideally would have preferred to have traded last year’s weather damaged carryover.
- Good spring conditions will see many farmers producing and conserving as much silage as they can themselves, particularly along the NSW Coast and Victoria.
- A mild October and rain have meant many farmers have not had to irrigate grass yet. Stock continue to graze and be supported by paddock feed at this point. Farmers able to utilise water for summer months.
- Wet conditions in the West and Tasmania continue to impact the new hay season.
- The hay season is well underway in most regions now with many growers having to make the decision to cut cereal crops before advancing too far. Ongoing rain events through New South Wales, Victoria, and Western Australia this growing season means many heavy crops will also be laying on damp ground and will require significant drying time.
- Boarder closures and permit requirements continue to be a concern for contractors as they work to understand the changing rules and regulations that they and staff must comply with when moving between regions and states.
- Silage season continues to me made in some parts of Queensland, News South Wales and Southern Victoria. Again, many farmers that would not traditionally make silage have found they have needed to avoid more weather damaged hay this season.
- In the north demand in the Atherton Tablelands remains steady with a small amount moving locally. Following the ongoing rainfall in Northern QLD many parts including the Tablelands continue to have an influx of fresh grass. The Darling Downs region reporting one of the best seasons following good rainfall for the first half of the year. Oaten crops have started to be cut in the area for hay.
- New South Wales reporting good crops following timely rainfall. South Australia impacted by dryer conditions, further in the Southeast crops are on track to yield well. Northern Victoria will start cutting within the fortnight. Several key factors still needed to take place and a relatively dry spring to improve on last year’s season.
- Western Australia has recorded one of its best season breaks. Rain has been timely for the west this season. High yields expected through the region as the season continues to progress well. Prices remain strong for all fodder types in WA.
- Buyers are encouraged to feed test and view fodder before purchasing to be sure of the quality of the feed.