Afleveringen
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In this market update episode of the Feed Central Hay Matters Podcast, host Jon Paul Driver and Dave Clothier discuss the Australian hay market as the harvest season winds down. They cover how recent weather has impacted hay quality, with a mix of grades now available, and look at the impact on yields in regions like South Australia and Western Victoria. With high demand from the beef sector, and steady prices across most areas, this episode provides timely insights for buyers navigating this season’s unique challenges.
Hay production in Queensland is mostly complete, with limited shed availability there is a higher proportion of paddock stacks.New South Wales and Victoria are nearing completion, although recent rain has affected quality, resulting in variable quality and the majority of sheds now full.In South Australia and Western Victoria, drought and frost have reduced yields by 30-50% compared to last year, causing significant losses for some growers.Recent storms and wet conditions have delayed harvests in the north, leading to bleached, lower-grade hay with thicker stems and higher NDF. Overall, high-quality hay volumes are down, as adverse weather and frost have pushed many high-yielding crops toward grain production instead of hay.High canola prices mean fewer frosted canola crops were turned into hay, contrary to initial expectations.Limited vetch planting this season has reduced supply, driving up demand for lucerne and other protein-rich hays, with prices expected to remain firm.Prices are steady across regions, with FCA grade cereal hay around $250 per tonne, likely holding through Christmas. Many producers are holding back supply in anticipation of stronger demand and firmer prices in early 2025.The beef sector’s demand for hay is strong due to herd growth and export opportunities, while the dairy sector is purchasing more cautiously given the variable hay quality and limited protein-rich options.Buyers are advised to secure supplies now to access the broadest quality selection at stable prices, avoiding potential price increases and compromised quality in early 2025.With high-demand periods likely through the summer and autumn periods, it’s important to factor in both quality and location to optimise the best delivered pricing. -
In the latest episode of the Feed Central Hay Matters podcast, our host, Jon Paul Driver, caught up with Dr. Andrew Walter for a deep dive into agricultural research and innovation. Dr. Walter has extensive experience across government, business, and academia, which has positioned him to lead projects that are reshaping hay production in Australia. His role has included leading the development of Australia's levy system, which funds agricultural research, and his practical experiences with advanced technologies such as AI to improve hay baling schedules and crop management. In addition to agricultural technology, the discussion includes pragmatic strategies that effectively manage carbon while maintaining agricultural productivity.
Australia's cutting-edge agricultural R&D includes the new hay levy, uniquely positioning Australian fodder on the global market through structured research funding that advances practices and sustainability.A detailed comparison between Australia's agricultural technology and global standards shows how Australia’s proactive levy system has been instrumental in driving forward-looking research for over two decades.The Australian Fodder Industry Association (AFIA) effectively consolidates the entire supply chain from seed companies to exporters, ensuring a unified voice in global discussions.Challenges and opportunities in implementing agricultural technology, including AI and automation, are set to redefine farming practices and efficiency.Climate change impacts on agriculture highlight the need for practical carbon management strategies and realistic goals towards achieving net-zero emissions in farming.The future of farming is being shaped by advancements in AI, with current projects utilising AI for precise crop and animal management, marking significant progress in precision agriculture.Despite being misconceived by some as a 'sunset industry', agriculture is vibrant and innovative, playing a crucial role in economic and technological advancement.The dynamics of international fodder markets demonstrate the importance of balancing competitive spirit with cooperative strategies for research and development. -
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For the second part of the Feed Central Hay Matters Hay Innovators series, Jon Paul Driver caught up Damon Humphris of Taggr and Gavin Leersen of BaleTime at the recent AFIA Conference. This episode dives into the solutions both innovators have developed to tackle age-old challenges in hay production. Discover how Damon's journey led to the creation of an automated tagging system for hay bales, simplifying the traceability process for exporters. Meanwhile, Gavin introduces BaleTime, a device that transforms hay baling timing with accurate humidity readings, boosting productivity and allowing farmers to manage baling schedules remotely, reducing the need for early morning field checks.
Damon Humphris describes the inception of Taggr’s automated hay bale tagging system, highlighting its role in streamlining the baling process and ensuring traceability for hay exports.Through trial and error, Damon integrated advanced robotics into Taggr, ensuring that each hay bale was tagged accurately and efficiently, setting a new standard in the industry.Damon’s journey through the technological hurdles overcome to develop Taggr included creating an effective tag-feeding mechanism that could withstand the rigors of large-scale farming operations.The idea for BaleTime came to Gavin Leersen while he was timing his sheep shearing; a farmer's offhand remark about needing to know the best baling time led him to harness humidity sensors for precise baling schedules.BaleTime provides farmers with a system to measure ambient and in-windrow humidity, helping them to optimise hay baling times with precision, improving yield quality and reducing unnecessary labour.The monitor operates effectively in areas with poor cellular service by utilising a simple SMS-based system that requires minimal signal, ensuring reliable communication and functionality even in remote locations.With their innovative approaches, Damon Humphris and Gavin Leersen are actively shaping the future of farm management, setting new benchmarks for operational excellence in agriculture. -
In the first of our two-part Hay Innovators series on the Feed Central Hay Matters Podcast, Jon Paul Driver sits down with Louis Kelly, Chairman of the Australian Fodder Industry Association (AFIA), and Bryce Riddell, the creator of HayShepherd, a groundbreaking system for monitoring hay sheds. The conversation covers critical developments from the AFIA conference, new technologies transforming hay farming, and the challenges and opportunities facing the fodder industry in Australia. Bryce Riddell introduces the HayShepherd system, developed to prevent hay shed fires by monitoring temperature changes in stored hay bales.
Louis Kelly talks about the role of AFIA in the hay industry, particularly in driving collaboration between farmers and innovators.Technology and innovation, while often incremental, can lead to significant changes in farm operations over time.Bryce Riddell joins the podcast to introduce the HayShepherd monitoring system, explaining how it was developed to detect temperature changes that indicate a risk of spontaneous combustion in hay sheds.The increasing cost of insurance for hay sheds and technological solutions, like HayShepherd, are now critical for mitigating risk and keeping insurance costs manageable.The hay sector must adapt to both environmental changes and market pressures, and the role technology will play in this transformation.HayShepherd works through sensors placed in the hay shed to monitor temperature variations between bales and the shed’s control temperature, with real-time alerts sent to farmers.The system was initially developed to meet strict insurance demands but has since become a critical tool for large-scale hay operations.The system can scale for use in large hay operations, with sensors spread throughout sheds to pinpoint problem areas. -
Jon Paul Driver catches up with National Sales Manager Dave Clothier for a hay market report and an indepth discussion on the current status of the national hay market ahead of new season. While Southern Queensland has seen good early-season hay production, and early harvesting in New South Wales promises high yields, dry conditions in South Australia and Western Victoria are expected to lead to lowered production. With much of the 2022 hay stock now gone, and high fodder demand, this is the idea time to fill the sheds.
The national stockpile of hay is largely depleted, with existing supplies either committed for domestic use or export. Price stability is expected by late October to early November as the status of the stockpile becomes clearer.In southern Queensland, there's been substantial hay production due to favourable early-season weather. Meanwhile, New South Wales has hay prematurely on the ground, and regions like the Darling Downs are experiencing unusually high yields and early harvests.In contrast, South Australia and Western Victoria face reduced yields due to ongoing dry conditions, affecting overall availability.With grain prices decreasing and cattle numbers on the rise, fodder demand is leading more farmers to turn to hay production to capitalise on the fodder market.Hay is only made for 90 days, but cattle eat 365 days a year, and this is the ideal time to fill sheds with high quality feed in preparation for upcoming demand. -
In this episode of the Hay Matters podcast, Jon Paul Driver talks with Dr. Louise Brown, CEO and founder of Hydgene Renewables. They dive into how hay and fodder are being turned into green hydrogen, revolutionising the way farmers can produce and use ammonia for fertilisers. Louise discusses her shift from academic research to spearheading this innovative startup, focusing on the practical benefits and potential of this technology for the farming community.
Louise transitioned from a career in academia to pioneering a startup that harnesses engineered bacteria to convert biomass into hydrogen.The process not only produces a key ingredient for ammonia but also offers a more environmentally friendly alternative to the traditional methods that rely heavily on fossil fuels.This technology's adaptability for on-farm use could significantly lower fertiliser costs and improve self-sufficiency for farmers.The technology is scalable, with the potential to bring economic and environmental benefits to farming communities.There are a range of opportunities for farmers to collaborate on creating the infrastructure needed to support this new technology, enhancing sustainability and community resilience.
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In this episode, Jon Paul Driver talks with Thommo, a hay industry veteran who began carting hay for over 62 years ago. Thommo discusses his early days of manual hay baling, his role as a founding member of the Australian Fodder Industry Association, and the technological changes he's witnessed and embraced in his long career. He also shares insights from his international travels and the strong network of relationships he's built across the industry. From his first hand-operated baler to a 50 foot mower to Australia's first Heston baler, join us for a fascinating episode as Thommo recounts the developments he's seen shape modern hay production over six decades.
Thommo started his hay carting career at 14, using a tractor and trailer borrowed from his dad to move hay 30 bales at a time to a location a mile away, and earning himself a shilling a bale. By the time he was 18, Thommo had saved enough money from carting hay to buy a Ford Falcon Ute.His big break came when he secured a major contract to supply 15,000 tons of small square bales yearly to a large feedlot. Despite the challenges, with three trucks and continuous hard work, he managed to make it work, hauling hay from as far as 200 miles away.In the 1980s, the introduction of round rolls and big square bales eased the labour and logistics of moving hay and Thommo's area was among the first in Australia to use the large Heston square balers, leading to a dramatic increase in efficiency and output.Thommo is a founding member of the Australian Fodder Industry Association (AFIA) and prides himself on never missing a conference in 25 years.He believes firmly in embracing new technologies; failing to adapt means getting left behind and staying current is essential for success in modern agriculture.Thommo values the connections he’s made throughout his career, highlighting that the relationships built across Australia, and his six years of work on agricultural boards in Canberra, have been crucial in navigating agricultural challenges.He embarked on a study tour to America about 20 years ago, which altered his initial perceptions of American farmers. The trip included visits to farms and a John Deere factory where he gained significant insights from interactions with both farmers and industry leaders.After the U.S. tour, he extended his travels to England, where his experiences included seeing a 50-foot mower that could mow 1000 acres in a day.Despite the technological advances he saw, there are practical limitations of relying solely on digital solutions in farming, making it a necessity to maintain a balance with both traditional methods and new innovations. -
Tim Ford, Director:
While there has been recent rain, many areas continue to experience a "green drought" with slow grass growth, particularly in the intensive grazing and dairy regions of Southern Victoria and South Australia.Despite some growth stimulated by summer rain, a dry autumn and delayed onset of winter have led to significant feed gaps and strong demand for hay, which has shifted industry dynamics.Historically, intensive dairy areas produced their own silage; however, this year has seen a substantial southward movement of hay from northern Victoria and Southern New South Wales, disrupting established supply chains.Reports indicate a disconnection between hay producers and consumers, possibly due to lost relationships and a general lack of knowledge on how to secure hay supplies, further complicated by changes in business ownership and succession planning.Feed Central has been facilitating the procurement of necessary feed since the 2002 drought, focusing on aligning the right product with customer needs through a detailed six-step process including listing, inspection, grading, testing, and delivery coordination.Dave Clothier, National Sales Manager:
Lucerne prices are coming down slightly to stimulate the market as we head into the colder months.Sheds continue to empty in preparation for the new season, resulting in minimal carryover, which is great for filling with high-quality new season hay.Western Victoria and South Australia have been dry, affecting yields and leading to a big feed gap; recent rains are helping, but spring weather will be critical to watch.Hay is moving from northern and eastern Victoria into these drier areas, with some growers re-sowing due to delayed rain.In Southern Queensland, hay is already on the ground, with conversations happening on early harvests around mid to end of August in northern NSW; longer curing periods will potentially have an impact on quality.Stable hay pricing is anticipated, similar to last year, but dependent on factors including above-average rainfall and the potential for frosted crops affecting volumes.With a bumper grain harvest forecasted, we might see a softening in hay prices, impacting both the hay and export markets. -
Episode Highlights:
Equi-Analytical was launched in June 2004 in response to the equine industry's need for specialised hay and pasture testing. Known for its robust NIR technology calibrations, Equi-Analytical licenses these globally.Equi-Analytical's launch in Australia will benefit the local equine market by reducing testing turnaround times for some services.Hay might be tested for many reasons such as to choose the best feed, or to assess the available feed to determine if supplementation may be required to meet your equine’s nutritional needs. Many metabolic health issues in horses, such as Cushing's Syndrome or Insulin Resistance, can be greatly improved by managing their diet.Hay corers help ensure accurate forage testing by collecting representative samples. They are available for purchase through Feed Central, or to borrow through some nutritionists, pony clubs, and rural stores. In the lab, samples are ground to a 1mm particle size, with only 60ml used for analysis at Feed Central. This highlights the importance of accurate in-lab and on-farm sampling given the small amount tested from potentially large sources.The Feed Composition Library on the Equi-Analytical website is a useful resource to compare forage test results with typical grass and hay profiles, providing a helpful starting point for understanding the numbers.Nutritional requirements will vary based on individual variations such as breed, age, and workload.After testing, it's best to take the results to a vet or nutritionist for advice for your circumstances. Alternatively, you can use nutrition software like FeedXL to import the data and identify dietary needs yourself. -
This week on the podcast, Jon Paul Driver sits down with Shaun Hann, the Manager at Toowoomba Hay Farm, to discuss his firsthand experiences after one of their storage facilities was declared to be in a fire ant zone. Shaun shares how this unexpected challenge has impacted their operations, the new regulations they are navigating, and the practical steps they are taking to remain fire ant free and compliant.
Episode Highlights:
The recent discovery of fire ants just kilometres away from Toowoomba Hay Farm's Oakey storage facility has necessitated a rapid educational and operational response to comply with stringent biosecurity standards.Fire ants, known for their destructive impact on crops and painful stings, represent a significant agricultural and public health threat.Following the identification of a fire ant nest in May, a five-kilometre contamination zone was established around the nest site, placing Toowoomba Hay Farm’s Oakey storage facility within this high-alert area.Fortunately, Toowoomba Hay Farm’s storage facilities already had bitumen and concrete flooring, but has taken additional biosecurity measures, including setting up chemical barriers and updating storage protocols, to prevent the spread of ants.Staff at the facility underwent extensive training and received certifications in fire ant management, ensuring preparedness and compliance with the National Fire Ant Eradication Program and Queensland's Biosecurity 2016 guidelines.Toowoomba Hay Farm has adopted additional safety protocols, including weekly inspections and advanced pest control treatments, to proactively exceed governmental requirements.The ongoing government-led baiting and chemical treatments aim to reduce the spread of the ant colonies, with the storage facility's status remaining in Zone One, indicating continued high vigilance and control efforts.The potential downgrade of the contamination zone from Zone One to Zone Two remains uncertain, which could impact future plans and costs.Visit the Feed Central website for helpful tips on biosecurity, along with training, and certification resources compiled by the team after their experience in a fire ant zone: https://www.feedcentral.com.au/fire-ant-resources/
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Episode Highlights:
Recent rainfall across the eastern seaboard has had minimal impact on reducing fodder demand.The EOFY is influencing decision making. Some growers are choosing to defer payments and buyers are deciding between filling on-farm storage now or in the new financial year.Demand is high and driven from the south, spreading into the north; all grades are selling well which bodes well for the new season.Beef prices are expected to remain strong for the next few years, supported by exceptional seasons and high livestock numbers in QLD, NT, and NSW. High calving and weaning rates are expected to continue boosting supply on the eastern seaboard.In WA, dry conditions are leading to increased livestock movement to eastern graziers and into abattoirs.While there is still a significant volume of hay available, it is distributed in smaller lots, making it challenging to secure large quantities. All grades are available, but larger lines of quality hay are scarce.The rapid sale of all hay grades, including weather-damaged stock, is setting the industry up for a promising new season. Unlike last year, when quality hay was left on pads due to limited shed space and faced higher risks, the current situation looks much more favourable for the upcoming season.Across the board, hay prices are firm, except for quality cereal grades where prices are rising due to demand. -
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There are concerns about potential oversupply in both Australia and the US. Natural events like droughts and floods regulate this supply to some extent. However, there is a limit to how much the market, especially in Asia, can absorb.There is a severe supermarket duopoly in Australia which is currently a major topic at the federal government level. This market dominance is not only impacting consumers who are already paying high prices but even more so for suppliers and growers, who are facing severe disadvantages.There's a need to ensure that growers can sustain their businesses, and at the same time, it's crucial to make products affordable so customers can also maintain sustainable operations.Opportunities in China's dairy industry are emerging as the market reopens after political issues and companies remain understandably cautious. If managed well, however, China could become a significant market again.Despite China's reopening, it's wise to also consider other regions. The Middle East, for instance, presents a substantial opportunity for the export market due to its potential for growth.Emerging markets, particularly in Southeast Asia, are demanding higher-quality products and proteins. The region cannot produce feed sources as efficiently as Australia, presenting opportunities for sustainable and profitable exports. -
Episode Highlights:
Each export company in Australia has its own procurement matrix, lacking a single industry standard.R&D priority is shifting to focus more deliberately on the animal performance contribution value.There are ironies in the industry: breeding for some desired stem sizes can be counterproductive for animal performance, even when buyers are accustomed to a those sizes, for example.Due to these complexities, RD&EE (Research, Development, Education, and Extension) are crucial.While it may seem like there is competition for supply from different countries, the focus on animal productivity and growing the industry increases the overall market, benefiting everyone.In a growing market, everyone wins, whereas mature markets lead to competition over market share.Current investments in Australian export fodder focus on health and wellbeing for the future.Weather-damaged product is a major contributor to lower gross margins for hay growers in Australia. Investments in mitigating this issue can positively impact profitability.Conditioning the hay reduces the risk of rain damage by reducing drying time. Focusing on shortening the dry-down period can significantly improve contribution value.Using a tedder rake can hasten the drying process but increases the risk of losing colour. This problem has made people hesitant to adopt teddering.US tedders don’t spread the hay out; they fluff the windrows to promote airflow through them. -
Podcast
This week, Jon Paul Driver is joined by Pat Guerin in a special two part episode to discuss some of the many opportunities in the Australian hay industry. The discussion covers the need for industry-wide standards, a shifting R&D focus towards animal performance, and tackling challenges like weather damage and drying processes. It also highlights the importance of collaborative growth in the export market.
Pat Guerin has a strong technical background in the hay industry. His career includes managing large hay export facilities in South Australia and Western Australia, and a background in agronomy and animal nutrition.
Episode Highlights:
There are significant opportunities to increase the value from research and development investments. AgriFutures, the peak government body, oversees 16 different industries, managing their R&D strategic plans. R&D investments benefit the entire process chain, not just the grower or plant breeder.Over the past 10-20 years, there have been significant productivity increases in the grain sector, making hay less competitive in crop rotations.To achieve high yields and improve production quality, the hay growing system needs modification. Key components like optimising the plant's response to light and cold are not inbred in the oat and hay varieties used in Australia.There is room to improve production quality in the oat and hay industry by incorporating traits like photoperiodism and vernalisation, which are currently lacking in Australian varieties.Focusing on these areas presents an opportunity to achieve higher yield values alongside better quality. -
Episode Highlights:
We are a country of extremes, with warmer temperatures and rainfall as high as 30% above average experienced recently across Queensland and New South Wales. Meanwhile, drier weather has intensified southward through Victoria, Tasmania, and South Australia, with Western Australia experiencing considerable drought.High temperatures are anticipated until the end of July. This will sustain pasture growth and provide security for graziers.Demand has still lifted considerably for all grades of fodder in expectation of colder weather. Beef cattle herds are at their highest since 2014, with excellent conditions and abundant feed driving up livestock numbers and boosting global exports, especially with US herd numbers low.Now more than ever, clients are more informed, asking for feed test results and making well-researched decisions, which is a positive development for the industry.The availability of quality hay is moving further south, increasing freight costs. It's wise to make informed decisions now to avoid higher freight charges in the future.Some growers are holding onto their product if they don’t need immediate cash flow, while others are negotiating to clear their sheds.Delivered prices remain similar to competitive price levels we saw last summer, but the benefit from lowered prices is offset by increased distance and freight costs in some regions.There is currently plenty of product available, but the approach of EOFY is a good time to secure feed while supplies are closer, reducing freight distance and costs. -
Episode Highlights:
Founded in 1990 in Balaklava, Balco was created to fill a community need for economic development and an operational need for streamlining within the export hay industry.The company has experienced continuous growth, starting from selling grain for leaf grain, before moving into hay pressing, and now makes and purchases hay for export from its site in Bowman and three other states.The investment into research and development means that hay is now grown better, compressed more efficiently, and loaded faster.There is now greater precision in the industry, as farmers increasingly focus on the business aspects, such as gross margins and profitability.A key benefit of the hay industry is the added income for dryland farmers; cash flow from hay sales typically arrives in October and November, providing an earlier financial boost ahead of grain harvests in December.Innovation in the industry hinges on maintaining farmer engagement in the developmental process and continuously refreshing practices, ensuring farmers remain confident in the industry's future.The industry has opportunities to revise bale dimensions and enable on-farm packing, thereby reducing the costs associated with mixing and high-density compression for export.The Exporters Association has helped exporters work together more closely towards common goals and innovation in the industry over the last decade, and has a strong commitment to continue these efforts into the future. To export hay economically, it must be compressed in the country of origin, and as the market adopts high-density balers and crimping techniques for faster drying, the hay industry is being taken to the next level. -
Episode Highlights:
A variety of rain events have impacted key hay growing areas recently, with some areas seeing up to 50mm while others have been left dry. Most grazing crops have already been planted from central NSW down into parts of Victoria, and some farmers will be grazing to a certain growth stage before making hay. Most hay growers won't be planting until after ANZAC Day. To diversify risk and take advantage of opportunities for grain or hay, growers need to look at the history of the paddock, whether it's prone to frost, and options for weed control and fertilising. It's important to track the pesticides used on crops as both domestic and international hay sales require a CVD (Commodity Vendor Declaration).The Wimmera Mallee country is seeing lupins and lentils compete with vetch in some regions; meanwhile, the canola price is down and growers are moving from canola back into cereal hay due to price and marketing opportunities.In areas that didn't receive rain, some growers are choosing to plant dry, which can be a balancing act as the ground has to be dry enough to plant and wet enough to germinate.It's been an extremely good season for hay production in the majority of areas, but there is still some two year old hay on the market which may be lower quality due to damage; it's important to feed test and visually inspect the hay to establish the quality. Although we're a long way off from making straw, there remains concern from last season's purchasing decisions made by Darling Downs Feedlots, which heavily concentrated on their local area. This may lead to more caution by southern straw growers this season who missed out on sales. While the price of balers has increased, many more machines are appearing on the second hand market.For growers looking to utilise a contractor at the end of the season, it's important to start looking now or talk to existing contractors to ensure availability. The hope is for a good curing period to produce quality hay, and that means having those sheds ready. Make sure that they are set up, clean, and ready to store hay.The key to a good season is preparation, capitalising on opportunities, and reduce risk by having options for grains or hay based on the conditions. -
1.2 million tonnes of Australian hay and straw goes for export each year, with 99% of that being dryland farming, planted in between the end of April and early June, made up primarily of oaten or cereal hay.Two key factors are crucial in oaten hay: Water Soluble Carbohydrates (WSC) and Neutral Detergent Fibre (NDF), while there are lower amounts of protein, averaging 5-8.5%.Balco rigorously maintains quality control throughout the export process. This involves inspecting fields immediately after seeding, monitoring for weed contamination during growth, core testing 20% of the product, and taking mixed samples that represent the entire field.A crucial aspect of the export process is ensuring the hay tests negative for Annual Ryegrass Toxicity (ARGT) before it is shipped.Export hay contracts operate somewhat differently from grain contracts. They are based on the area of land (hectares) rather than volume, with a cap on the tonnes exported in a good season. Importantly, there is no penalty for the seller if adverse conditions, like drought, lead to a reduced yield. Rob recently visited El Centro and Ellensburg in the USA, as well as Korea, Japan, and China. He observed that, following price crashes last year, exporters were holding onto their product, hoping for a price increase to avoid realising their losses.A positive development last year was the restoration of the Chinese market for Australian exports for the first time since the COVID-19 pandemic. Additionally, shipping rates have started to decrease for the first time in a while. Due to its geographical location, Australia is often the last to experience the benefits of changes in the export market.Currently, Australia boasts a variety of mid to high-grade hays. Coinciding with the return to normalcy of the Chinese market, this situation has positioned the Australian export market favourably.Currently, the global dairy industry is under pressure, and it may take some time to stabilise.Ensuring oaten hay is competitively priced to offer fair returns to growers is crucial. In every supply chain, each participant playing a significant role must be able to profit. If, for an extended period, someone earns a disproportionate profit, it's almost certain that the supply chain will collapse within a year or two.Rob shares a message of cautious optimism in the oaten hay space, highlighting stability.
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Episode Highlights:
Anthony and Jeff travelled from Toowoomba to Glen Innes, then on to Tamworth and Forbes, up through the Hunter Valley and then looping back via Moree.They found numerous areas to be drier than expected, with rainfall proving inconsistent across various regions. This has resulted in some farms boasting full paddocks, while others remain dry.The demand for hay is on the rise again due to drier conditions, as buyers approach the end of the reserves stored away pre-Christmas, in anticipation of a heatwave that never materialised. Reports indicate that numbers in the feedlots have reached an all-time high, demonstrating significant confidence in the cattle market.With drier weather possible going into winter, it's important to keep an eye on feed reserves to avoid the need to purchase larger quantities in winter.There are some excellent lines of hay available, including lucerne, providing ample opportunity to explore a wide variety of feed options.After the summer slowdown, hay has started to move again, and this pace is expected to increase as graziers prepare for winter. -
Episode Highlights:
Australia has experienced above-average rainfall across Eastern Australia, affecting hay demand.The unexpected shift from El Niño predictions to increased rainfall has led to a reversal in livestock unloading, now increasing demand and prices for livestock.Demand for hay has tapered off over the past 6-8 weeks, but seasonal demand is expected to rise again from March through June.Approximately 25-30% of hay has been compromised by being paddock stacked and rain-damaged making it less desirable compared to shedded hay.Graziers are preparing to stock up for winter, given the long wait for new season hay in October.Graziers are prioritising quality hay, and are willing to pay more to avoid the risks associated with rain-damaged fodder.The importance of high quality hay becomes paramount in the cooler months, with aroma and colour also crucial for weaning livestock.Market dynamics suggest that the price for cereal hays may decrease slightly, but transportation costs from distant locations could offset any savings.The export market of oaten hay is putting a solid floor in that market, especially in Southern States.Bale weight significantly impacts the cost-effectiveness of hay transportation, with heavier bales preferred to offset transport costs.The feedlot sector faces challenges with high commodity prices, affecting cash flow and operational margins. - Laat meer zien
