QUALITY hay is in demand as supplies tighten and pasture is yet to receive the warmth required to boost growth.
That’s the message from the Australia Fodder Industry Association, which released its latest hay report last week.
According to the AFIA report, input costs are continuing to impact cropping decisions and this has reduced the quantities of pasture hay produced during late winter and early spring.
“Opportunistic hay production has not been seen as a price-competitive cropping option in many regions where grain crops are an alternative,” the report states.
The industry report said high-quality cereal hay was in low supply in most regions throughout Australia and, as a result, fodder users concerned about the potential of reduced supply were looking to lock in spring supply contracts.
“In a number of regions hay and fodder producers have little hay on the open market for sale to new customers as most has been contracted for sale to long-term buyers.”
According to the report, prices remain steady in most regions due to a lack of open trade.
“Most hay being currently sold was contracted for purchase earlier in the year, so prices do not reflect current costs of production nor the predicted reduction in hay production this spring.”
The latest report said a range of biosecurity incidents which have the potential to impact Australian agriculture was also causing significant concern among farmers, especially in relation to foot and mouth disease, the varroa mite and other pest incursions such as slugs.
Weather concerns, flooding, farm labour shortages and increasing input costs were also highlighted as issues for the industry.
“There is concern the high price of inputs, lack of availability of farm labour and likelihood of continuing higher-than-average rainfall in some regions is not being factored into fodder prices,” the report states.
Meanwhile, buyers sourcing quality hay are encouraged to feed test and view fodder before purchase to ensure its quality.
