Hay Report

National Summary

National background comments: report for the week ending 9 October 2020.

The next update will be on Friday 16 October 2020. Direct links to reports on each dairy region immediately follow this national summary for hay.

Hay making in central South Australia and the Mallee in Victoria continued to be hindered by rain with some parts recording over 20mm this week. This is expected to cause varying degrees of damage to vetch and cereal hay. Export hay in the southern parts of Australia is expected to be downgraded due to the weather damage, at this stage quality is still to be determined.  

There has reportedly been an increase in growers who will only make limited hay and instead carry crops through for grain this year. Central South Australian growers with wheat crops are considering taking them through for seed to be stored on farm rather than risking more damaged hay.

There is still very little demand across all states. New season prices are still unclear as the harvest is yet to start in some parts, whilst others have been heavily affected by spring rain. Inquiry for new season domestic hay is slow, however there are some farmers that would like to take advantage of the low prices and put feed away now while the opportunity is available. At this stage demand is still dependent on quality of the hay come harvest. 

Dairy farmers in Gippsland and southwest Victoria are reportedly wanting to secure good quality new season vetch and cereal hay. They are looking to contractors and traders to source a good product and terms for the next twelve months. 

We caution buyers and recommend feed-testing and viewing fodder before purchasing to be sure of quality of the feed.

State Summaries

Northern Australia - Summary

• Hay demand in the Atherton Tablelands remains steady with a small amount moving for weaner cattle and into trade stores for the equine industry.
• Atherton Tablelands have had much better conditions for making hay over the last month.
• The Darling Downs crops are well on track following good rainfall over the last two months. Cereal hay continues to be cut but there is still little to no demand.

Southern Australia - Summary

• Crops continue to do well across New South Wales, Victoria and South Australia, as most areas have received good consistent rainfall.
• The silage season has commenced in central New South Wales and northern Victoria for advanced crops. Central New South Wales will start cutting hay within the fortnight once the next weather front passes. Northern Victoria will also start cutting mid-October depending on conditions.
• Growers are anticipating a significant amount of hay to be made this season. Many are now making sure they have the undercover storage available to carry as much as they can, as demand is expected to slow for some time.

Western Australia - Summary

• Confidence has been restored to the west following more significant rain. There is no demand at present, and this is expected to remain the case until new season hay is available, with a majority of it going for export depending on quality.
• The export industry continues to dominate the market and is a solid indicator on pricing. Exporters continue to seek out quality hay and as a result will set the market price.
• Cutting has begun in the east and also at the top of the Wheat Belt. Warm conditions are quickly finishing off the season.
• Good rain that came late in the season has been ideal for finishing off crops in many parts of the state. However, there is areas that have missed out on this rain, especially in the east, and growers are expecting yields to be below average.
• Prices remain relatively high for all fodder types in Western Australia.

Price change in table below reflects moves since previous report (2 October 2020)

All Location Hay Prices

About the Hay Report

Why the hay report is created

Farmers, government, industry advocacy and businesses across the supply chain require independently produced, unbiased data on the industry to inform strategic decisions and policy formation.

Hay reports provide an independent industry view, bringing together key data and insights across the supply chain and industry without any vested interest.

The hay report is created using data provided by the Australian Fodder Industry Association (AFIA).

Interpreting the reports

Hay prices are based on shedded hay without weather damage, of good quality and colour. There is a wide variation in quality for hay, so prices are indicative for a mid-range product.

Prices are estimates based on delivery to dairy farms with allowance for freight, storage, and marketing costs, but exclusive of GST. Actual prices may vary for quality or other reasons.

In this video, dairy farm manager Brian Corr explains how Dairy Australia's hay and grain email updates help him make more informed decisions on-farm.