NEWSLETTER - Australian Fodder Industry Association

situation is bleak. Wyangala Dam has had no
inflow and only 40 per cent of the carryover
is available for irrigation as part of the
drought contingency plan.
While very little hay is trading, Gary puts
the market for prime lucerne hay at around
$290-330 / tonne for big bales and around
$10-12 per bale for small bales. Second
grade lucerne is nominally trading at
between $200 and $290. Prime, or export
quality, cereal / oaten hay is selling for
around $160-170 / tonne (all prices are plus
GST).
Continuing with the theme of dry and patchy
conditions, Philip Hanna of
Berrigan on the border
between NSW and Victoria
says the crops in his area are
‘real bad’ and crops are
starting to ‘go back into the
ground’. Having said this,
Phillip says areas to the north
and the south received good
rain during July.
From a hay market perspective,
Philip says that before the rain,
about a month ago, you
couldn’t have enough hay there
was so much interest, but since
the rain the market has ‘died in
the butt’. Before the rain hay
was selling for $220-250 /
tonne for lucerne hay and
around $180 for oaten hay
(prices are plus GST). But
now, very little is selling.
As with other areas, access to
irrigation water in the Berrigan
area is limiting hay production.
The Hume Weir is around 24
per cent full and there is zero
irrigation allocation.
Along the river and up the
Hume Freeway from Philip’s,
Bill Fife, transporter,
wholesaler and retailer of hay in the
Goulburn area, confirms he too is travelling
to buy hay, but says there is good quality and
good volumes if you are willing to travel.
In August Bill said he was buying cereal hay
in northern Victoria for around $120-140 /
tonne and chaff quality lucerne hay for
around $220-230 / tonne, but this is more
difficult to source.
As a transporter, Bill noted that fuel is now a
much bigger part of his costs. Previously, as
a rule of thumb, fuel was about a quarter of
total costs, but now it is more like a third.
AFIA Newsletter September 2006 6