Focus on Fodder - Australian Fodder Industry Association

...district reports
Continued from page 1
Queensland
There is a significant gap between the market for Lucerne to
horse and cattle markets. The supply of premium quality hay
for the horse market is diminishing rapidly, while the supply
of lower grades for the dairy and feedlot sector are adequate
due to hay being bleached during the production season.
Equine markets are paying anywhere from $60–120/mt
premium for hay that meets their specs. The challenging
trading environment for feedlots is dampening their demand
for hay and straw for their ration mixes. This seasons winter
hay crop is in good shape with cereals on track for solid yields.
Price ($/t)
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Cereal hay and grain prices, south east Qld
Cereal hay 2011
Cereal hay 2012
Wheat 2011
Wheat 2012
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
New South Wales
The central west of NSW is experiencing a great season
and demand for hay is high from riverina dairies and cattle
producers. Chaff markets are also active hay prices have
consistently been rising over the last few months. The Bega
Valley remains quiet as a destination for hay. Most farms in
the valley are now relatively self sufficient, though there are
odd lots of cereal moving from the central west for those
looking for some fibre in their cows diet.
Victoria
As vehicle registration plates suggest, Victoria is “the place to
be” for hay producers. The demand from western Victorian
cattle producers and south west dairies has been strong over
the last four months and is expected to continue through to
August until pastures achieve some growth. The dry spring
and late autumn break has been the catalyst for this higher
than usual demand. In contrast Gippsland has had high
fodder demand due to the wet autumn and winter period.
South Australia
Similar to Victoria there is a high level of demand for fodder
from south east dairies for both Lucerne and cereal hay. Due
to the high level of export demand, cereal hay is difficult to
source and most are using local pasture hay as an alternative.
Acreages sown to oaten hay are at a more “normal” level
this year which is up on 2011 sowings and fuelled by a
page 10 AFIA Newsletter Winter 2012
Price ($/t)
The Markets
strong export market. Export hay processors are positive
about increasing volumes to China and the Middle East and
are backing their judgement by increasing their processing
capacity.
Western Australia
There has been some slight movement in the market for hay
into south west dairies but mainly for local pasture hay, there
has not been the need to source cereal hay further afield
from cropping zones. High quality hay is extremely hard to
find and horse markets are paying a premium for hay without
weather damage. Chaff processors are struggling to find
premium quality lucerne to meet demand. As a consequence
of the tough curing conditions last year and the difficulty in
selling weather damaged hay, acreages sown to oaten hay
varieties appear to be down around 20%.
Price ($/t)
400
350
300
250
200
150
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
400
350
300
250
200
150
Cereal hay and grain prices, south west WA
Cereal hay 2011
Cereal hay 2012
Wheat 2011
Wheat 2012
Cereal hay 2011
Cereal hay 2012
Wheat 2011
Wheat 2012
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tasmania
The host state of the AFIA National Fodder Conference is
experiencing a fantastic season and demand for purchased
hay is low. However due to wet conditions fodder
consumption by dairy cows is quite high but the demand is
being met by hay produced on farm. It is anticipated that this
situation will remain the same for the rest of the winter. A