Dry start to year has graziers seeking hay

He said there was still hay available but as the wait for an autumn break continued, there was plenty of movement of hay across the country.

“We are probably finding top quality grades are becoming scarce so even lower quality grade hay is moving about,” he said.

This increased demand comes on the back of a bumper year leading to an oversupply of hay in the 2016-17 season, followed by smaller areas sown and tonnages produced in 2017-18. 

The PIRSA Crop and Pasture Report for the 2017-18 season showed 202,900 hectares were used for hay production across the state – the smallest area sown to hay in the past five years.

It resulted in 948,600 tonnes of hay, down on the five-year average of 1,019,800t and on the previous season’s 1,454,300t.

Mr McKew said one bonus for those sourcing hay was that supply carried across from the 2016-17 season meant prices had been subdued until recently.

“Fodder prices across the country are still reasonably low,” he said.

He said there was already signs of prices starting to lift in parts of NSW, while they remained stable in most of the country.

“Prices are probably as low as they’re going to be,” he said. “There is acute and strong demand across Australia.”

Mr McKew said everyone with livestock was starting to think about if they needed supplementary feed.

“People are starting to think about building reserves up, especially if it’s going to be a cold, dry winter,” he said.

“Everyone is still hoping the autumn break is just around the corner but people are buying hay for immediate need and starting to think about longer term.”

While fodder prices remained low and livestock prices stayed high, he said the decision was easier.

“It is still economically sound to feed livestock – it makes the equation a bit more palateable,” he said.

Hay grower Max Dix, Finniss, said he had seen sales inquiry lift in the past month.

He usually sells to horse owners but this year has found a growing market for sheep and cattle producers selling some of the stockpiled hay from the past two years.

“I’ve got a bit left, only 600 or 700 rolls out of 3000 not committed,” he said.

“I have a very good chance of selling right out in the next few weeks.”

He has been delivering hay across the Fleurieu Peninsula, into the Adelaide Hills, and has even had interstate inquiry.

“People are coming out of the woodwork everywhere looking for hay,” he said.

“As the season gets later and with no real rain, people are pushing the panic button a little. Some are buying because they need it now, but people are also trying to cover themselves for the next three to five months.

“Even if it rains now, we won’t get feed overnight. And if it turns cold, that will slow the growing process right down.”