Hay shortage leads to jump in prices

This is the fourth largest jump nationally in dairy regions, behind 218pc in the Goulburn and Murray Valley region in Vic, 153pc in the Vic Gippsland and 143pc in Central West NSW.

While northern Australia, such as the Qld Darling Downs and NSW North Coast had some of the highest hay prices in Australia – up to $450/t – this was on the back of already high prices.

Dairy Australia reports in January the average for cereal hay prices in the South East was $107 a tonne, and $115/t in Central Districts.

In August, these prices had risen to $250/t in the SE and $270/t in the central districts.

The biggest jump in the SE occurred between May and June, where prices went from $110/t to $218/t, a lift of 98pc.

In the Central Districts, the largest one-month jump happened between June and July, up 30pc from $163/t to $212/t.

Hay is at its most expensive in five years for the Central Districts, while in the SE, hay was $258/t in August, 2014.

DA managing director David Nation said the high demand for fodder was causing a feed shortage in many key dairy regions, while water prices and availability were also adding to the uncertainty for irrigators.

He said DA was focusing on providing advice and support to maximise home-grown feed in late winter and spring.

“DA activities will also be ramped up to provide insights on the hay, grain and water situation, and to ensure farmers have access to the best possible information to make the right decisions,” he said.

“We recognise that a feed shortage is the last thing the industry needs after a difficult few years, but we feel confident in the strength of the dairy community and the ability to draw on our experience in managing feed shortages and challenging operating environments.”

He said dairyfarmers should be prepared and act to best prepare businesses for the coming year.

Some of these tools, including regular gain and hay price reports, are available at dairyaustralia.com.au/feedshortage