Knowing how the fodder market works is the first step in setting up a smart strategy for buying fodder.
The information below, including Dairy Australia's data and reports, will help dairy farmers make decisions that are right for their farm business.
Competing in a world market
Australian dairy farmers are competing in a world market for grain. An understanding of how the global grain market operates will help dairy farmers appreciate where they sit in the global grain scene and enable them to develop a grain buying strategy that meets their needs.
Key tips on world markets include:
- Australian grain users operate in and are influenced by the world grain market
- The introduction of bio-fuels has changed the way the grain market operates
- The current world market is driven by the volatile relationship between consumption and production
Dairy Australia's Buying grain in the world market factsheet explains some of the details of the international grain market including:
- Overview of global grain market
- Explanation of supply/demand
- Price volatility
- Setting a strategy
Buying fodder in the domestic market
Australian dairy farmers are competing in a domestic market for fodder. Understanding how the market operates will help dairy farmers develop a fodder buying strategy for their farm business needs.
Key tips on the domestic market include:
- Unlike grain, fodder is a domestic market
- Hay prices are less transparent than grain prices
- Consider the on-farm fodder buyer
- Be proactive in developing a relationship with a professional hay producer
Weekly updates on hay and grain markets nationally, including regional charts and trends, are available on the hay report page and the grain report page.
Buying fodder its a domestic market 2010PDF, 519.36 KB
Buying grain its a world market 2010PDF, 498.76 KB