Hay Report

National Summary

National background comments: report for the week ending 15 October 2021.

The next update will be on Friday 29 October 2021. Direct links to reports on each dairy region immediately follow this national summary for hay. 

Driving Prices Up

• There is widespread concern that there will be a shortage of good quality new season hay. Wet conditions have firmed up growers’ decision to harvest for grain; in some cases where yields are expected to be down in western Victoria and South Australia, growers would still rather take the price on grain.
• There are also reports of a new season vetch shortage, as the product is favoured by farmers because of its protein content. This could see the trade of lucerne increase to fill this gap over the next year.
• Opportunist trade continues where farmers can store hay, they are seeking out any available good quality fodder from previous seasons.
• The cost of production is set to increase in the coming year with fertiliser, chemical and fuel resources all estimated to climb dramatically in price.

Driving Prices Down

• New season prices are not expected to increase dramatically as many farmers wait now to see how much is produced and the quality of new season hay before committing.
• A significant amount of last season’s weather damaged hay is on the market at a reduced price. With the potential for more lower grade hay again this season, many growers would have preferred to have traded last year’s weather damaged before now. This has proved difficult with current subdued demand for fodder.
• Good spring conditions will see many farmers producing and conserving as much silage as they can themselves, particularly along the New South Wales coast and Victoria.

Local News

• Wet conditions across the country have started to impact the new hay season, replicating the conditions of last year. The small amount of vetch cut in western Victoria will not fair well if down for an extended period.
• The hay season is expected to be well underway by the end of the October in most regions, with many growers having to make the decision to cut cereal crops for hay now at the optimal growing point, before grain starts to form and risk potential rain damage. Ongoing rain events through New South Wales, Victoria, and Western Australia this growing season means many heavy crops will also be laying on damp ground and will require significant drying time.
• Border closures and permit requirements continue to be a concern for contractors as they work to understand the changing rules and regulations that they and staff must comply with when moving between regions and states.
• Majority of spring silage has been made now in northern Victoria, with southern Victoria beginning in the last fortnight but continues to be hampered by wet weather. Favourable conditions in the Bega region will see a significant amount of silage made again this season.
• In northern Australia, demand in the Atherton Tablelands remains steady with a small amount moving locally. Following the recent rainfall in Queensland, many areas have had substantial pasture growth. The Darling Downs area is reporting one of the best starts to a season following good rainfall for the first half of the year. Oaten crops have started to be cut for hay in the region.
• Southern Australia is on track for a good season with timely rain, with most regions are reporting good growth. The northern Victoria region has started to cut silage and is expected to begin making hay within the next fortnight
• Western Australia reportedly recorded one of its best season breaks. High yields are expected through the region as the season progresses well, with prices remaining strong for all fodder types in WA.

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 (08 October 2021)

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.