Hay Report

National Summary

National background comments: report for the week ending 16 October 2020.

The next update will be on Friday 30 October 2020. Direct links to reports on each dairy region immediately follow this national summary for hay.

The week has brought better conditions for hay making in South Australia and western Victoria. Growers are moving as quickly as possible to get hay in bail before the next rain front moves through this weekend. This rain front is expected to bring milder conditions.

Hay destined for the export market in southern parts of Australia and Western Australia is expected to be downgraded due to weather damage, at this stage quality is still to be determined.

As more hay is cut in the east curing time will become an issue due to big heavy crops and wet conditions that are predicted for the next month.

Inquiry for new season domestic hay continues to be slow. With record cattle prices and good paddock feed in many areas, demand remains subdued.

New season prices coming through in central west New South Wales where undamaged oaten hay is being delivered for $240 - $280/tonne.

Dairy farmers in Gippsland and southwest Victoria are wanting to secure vetch and cereal hay. They will take last year’s good quality hay rather than risk be offered a weather damaged new season product.

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

• Demand in the Atherton Tablelands remains steady with a small amount of hay moving for weaner cattle and into trade stores for the equine industry.
• Atherton Tablelands have had varied conditions for making hay this season.
• Darling Downs crops are well on track following good rainfall over the past two months. Cereal hay continues to be cut but there is still little to no demand.
• Summer rainfall would be ideal to carry rhodes grass and lucerne crops through.

Southern Australia - Summary

• Crops continue to do well across New South Wales, Victoria and parts of South Australia, with most areas receiving good consistent rainfall.
• With rain forecast on and off for the next month it will be very difficult for growers to have a window of no rain to cut crops.
• Hay continues to be cut in New South Wales and northern Victoria, with growers reporting some of the biggest crops seen in years. Yields are expected to be 10/tonne plus on cereal crops.
• Central South Australia and into the Mallee have been significantly hindered to cut crops by the past months rain.
• Growers are anticipating a significant amount of hay to be made this season. Many making sure they have the undercover storage now to carry as much as they can, as demand is expected to slow for some time.

Western Australia - Summary

• There is minimal demand for hay at present and demand is expected to remain subdue until new season hay is available, with a majority of it destined for export markets 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 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. There are areas, especially in the east, that have missed out on significant rainfall and growers are expecting yields to be below average.
• Prices remain strong for all fodder types in Western Australia.

Price change in table below reflects moves since previous report (9 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.