Hay Report

National Summary

National background comments: report for the week ending 24 June 2022.

The next update will be on Friday 1 July 2022. Direct links to reports on each dairy region immediately follow this national summary for hay. 

Driving Prices Up

• Good quality cereal hay is now in high demand but there is short supply across a number of areas. Farmers looking to purchase and store fodder against expected winter demand may find long-term customers are given first options by hay and fodder producers.
• The expected drop in temperatures and cold front responsible for rainfall events across the country have both contributed to the need for supplementary fodder.
• Current high forward contract prices due to strong international market demand has encouraged grain growers to plant additional grain crops instead of investing in hay production. With opportunistic hay production not being seen as a price competitive cropping option this season, a smaller number of hectares has been sown.
• Hay growers are tending to preference existing customers over new ones given the shortage of higher quality hay. Hay sheds are less than half full, but most is already committed.
• Input costs continue to impact cropping decisions as grain and fodder producers undertake sowing. For many producers, pasture hay will not be a priority for fertiliser application and may lead to reduced quantities being available during late winter/early spring.

Driving Prices Down

• Expectations for a wetter than average spring will maintain confidence, with pasture growth holding potential to support stock without a need for supplementary feed.
• Varied qualities of fodder are available on the market. Growers with lower grade hay, particularly hay stacked outside, have been actively trading to reduce the amount stored on farm in preparation for the new seasons harvest.
• The quality of late season hay was impacted by continuing rain events across most states. Rainfall has meant many crops were harvested later than usual, resulting in coarser hay of lower quality.

Local News

• Most grain and hay production areas across Australia have completed sowing. Dry sowing had commenced in April in some regions with reliance on subsoil moisture.
• Access to paddocks in some areas has been hampered by ongoing rainfall events and saturated soils.
• Many cropping areas have received reasonable and, in many cases, consistent falls of rain, improving confidence in the 2022/23 cropping season.
• The Bureau of Meteorology (BOM) has announced the end of La Niña, but have indicated that there is a 50% chance it may reform later in the year, bringing wet conditions for late winter and into Spring.
• High input costs and availability of labour remain of general concern. The lack of available labour may impact hay production in the coming season and will restrict hay movement over winter.

Buyers are encouraged to feed test and view fodder before purchasing to ensure of the quality of the feed.

Price change in table below reflects moves since previous report (17 June 2022)

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.