North West Tasmania

Grain commentary

Hay commentary

Hay commentary

  • If rainfall continues at this rate through the autumn and winter, we could expect extremely wet conditions in the north west and a lift in the consumption of fodder.
  • A good rain throughout the whole state on top of what has already been a terrific start. Most of the state had an average rainfall for April, however the south east experienced below average rainfall.
  • Pastures in Tasmania are maintaining dairy herds well and no supplementary feeding of hay is required.
  • With the abundance of paddock feed and conserved fodder stored many pasture crops are simply being topped and left for livestock to graze
  • Most dairies have enough on farm supplies of silage and hay without having to buy any fodder in
  • A very inactive market in Tassie which is not expected to pick up in the short term
  • Prices are not moving as there is no trading occurring
  • Low stock numbers are also restricting fodder sales
  • Round baled pasture hay is on offer without any reported sales
  • Lucerne silage is available at around $250/t DM.
  • Straw supplies are limited and demand is minimal
  • Tasmanian feedlots, piggeries and mushroom growers require straw and compete for the limited supply.
  • When purchasing fodder it is advantageous to know the energy and protein levels in the feed. With this knowledge it is easier to calculate how much to feed out based on the cows energy requirements to produce a given amount of milk. Significant savings and production gains can be made in feeding out fodder in the most efficient manner.
  • Some pasture hay which was cut late is of poor quality. A feed test will assist in determining the value both from a nutritional and cost perspective.
  • Hay producers are reporting there is more positivity amongst their dairy clients.
  • Silage sales should be made considering the moisture and energy levels of the silage in question. Careful measurement of moisture should be undertaken for any trade in silage. A dry matter (DM) price is the starting point that can be calculated from a prevailing hay price i.e.
    • Hay cost per bale/weight mt = price/mt
    • Hay price $/mt / (dry matter %) = DM price/mt.
    • This DM price is then corrected for the silage moisture content i.e.
    • DM price x (dry matter %) = silage price wet /mt.
  • If you were to take a bale of hay valued at $60 and a bale of silage at $60, both of exactly the same quality, let’s compare the DM cost of each.

Silage  $60/0.500mt = $120/mt
  $120 / 50% = $240/DM mt
Hay   $60/0.350mt = $171/mt
  $171/ 86% = $198/DM mt
In this example the DM cost is considerably less for the hay but highlights the fact that you need to know exactly what you are paying for and how costs are affected by both bale weights and moisture levels.

  • Any likely premiums in quality for the silage over the hay need to be taken into account as well.