Hay Report

National Summary

National background comments: report for the week ending 23 July 2021.

The next update will be on Friday 6 August 2021. Direct links to reports on each dairy region immediately follow this national summary for hay. 

Driving Prices Up

• The cost of production for growers has had a big leap in comparison to previous years, due to fertiliser shortages causing prices to surge.
• Vetch has been increasing in popularity over the last couple of years due to its high protein. The late and dry start experienced in the Mallee and South Australia, key vetch growing regions, may negative impact vetch production this season. Local sources are indicating there could be a shortage later in the year.
• Wet and cold conditions across Southern Australia are predicted to continue for another four to six weeks, which may see some farmers will need to seek out additional fodder to carry stock through.
• A shortage of good quality cereal hay is being reported as grower’s stores have been drained of any remaining 2019 hay. Undamaged stock from previous seasons has also been traded over the last month and is expected to be depleted soon.

Driving Prices Down

• Many farmers continue to work through conserved on farm stores, reducing the need to buy in feed. Last spring a significant amount of silage was made across New South Wales and Victoria and many farmers only started to utilise this feed in early June.
• High cattle prices continue to impact demand as many areas in Queensland and New South Wales destocked significantly during the drier periods. They are currently in the process of increasing numbers again, mainly through breeding.
• Domestic hay trade has been at all time low for approximately eighteen months, due to favourable conditions across the entire country. Previously, high fodder prices were driven by drought conditions experienced across eastern Australia, with a high demand for hay in these regions.
• Varied qualities of fodder are currently on the market, with large volumes of weather damaged cereal hay available from growers looking to move this stock and make room for new season hay.

Local News

• Rain again this week across many regions, causing difficulty for growers wanting to spray and fertilise. Paddocks are reportedly not drying out between weather fronts and, with the cold conditions, crop growth has slowed. However, with only five weeks till spring, many growers are anticipating a good finish to the season.
• Farmers in many regions are feeding out while paddock grass is dormant, also aiming to prevent damage by keeping stock out of wet paddocks that will be grazed or cut for silage in spring.
• Wet and cold conditions have significantly delayed the harvest of summer crops with many having to abandon some maize chopping in the southern Victoria.
• 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.
• Southern Australia is on track for a good season with timely rain, as most regions are reporting good growth. The region is hoping for a relatively dry spring to improve on last year’s season.
• Western Australia reportedly recorded one of its best season breaks. Rain has continued to fall, with high yielding crops already being noted. A large portion of hay produced in the region is moving domestically, after recent trade issues with China. Prices remain strong for all fodder types in WA.

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

Price change in table below reflects moves since previous report (16 July 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.