Quality to drive hay demand

With domestic demand slow and oaten hay exporters still harbouring significant stocks of low-grade product, Australian Fodder Industry Association chairman Brad Griffiths believes anything that slips under higher grade specifications will be "difficult to shift".

"There's not a lot happening domestically and there's not a great amount of demand from exporters," he said.

"They have reserves of low grade hay, so they'll get the amount of higher grade hay they need and be able to pick and choose because supply will likely outstrip demand for the export sector.

"Quality hay always sells so the operators that have a good product, get it under cover and have got storage can be confident, but anything that slips out of spec might be in trouble."

Mr Griffiths is a hay and grain producer from Mallala and says recent rain across parts of the state, as well as strong wheat prices and average hay prices, will have people considering whether to cut crops for wheaten hay or leave them for grain.

He said with minimal amounts of hay on the ground in the Lower North, many would be happy to forgo some hay in order to finish off grain crops.

The Griffiths have only just started cutting and the AFIA chairman believes there will be a lot more hay on the ground in the coming week.

He said while hay on the ground in the past week would have copped some rain, it was unlikely to be spoiled as it was not ready for baling and the regions with more hay on the ground dodged some of the heavier falls.

Grant Jaeschke, Hill River Hay near Clare, is also predicting that many will let wheat crops go to grain fill that they may have usually cut for hay.

"We're not planning to do much wheaten hay due to the fact wheat is worth $370 a tonne," he said.

"That will go to grain unless we get a frost event, which is looking fairly unlikely."

Mr Jaeschke said the season had been kind in their immediate area - despite below average rainfall for the year they did have an "extremely wet" winter and intermittent rain in the past month has them looking at above average crops.

Hill River produces oaten and wheaten hay for export and supplies the domestic market with oaten, wheaten and lucerne hay, as well as wheaten and barley straw.

Mr Jaeschke said they would likely start cutting early next week, a later start than usual due to 18 millimetres of rain in the past week.

"The pure lucerne we have is exceptional and the oaten is very much the same," he said.

"Yields could be between six and eight tonnes a hectare."

Like Mr Griffiths, Mr Jaeschke believed demand would be quality-driven this season.

"There's a lot of old grade five hay stocks around," he said.

"Anything that's green and of any quality will probably be in high demand and prices should be about average."

According to Dairy Australia's latest hay report, South East hay production is expected to start in late October.

Paddock feed has improved as spring conditions hit, which is impacting demand as farmers use what feed they have.

There has been limited inquiry for straw, with most farmers not wanting to buy significant amounts of fodder so close to the new season.

The report said it was decision time for Central SA growers on whether to cut crops or carry through for grain, while exporters would only be taking a limited amount of new season cereal hay and it would need to be a premium product.

Prices for cereal hay have eased recently in both the South East and Central SA, while lucerne and straw remain steady.

DESPITE 29 millimetres of rain falling in the past nine days, Strathalbyn hay producer Brian Tucker wasn't expecting any significant delays and planned to start cutting barley crops for hay this week.

Mr Tucker, who cuts and bales 300 hectares for hay each year, has already cut some pea silage and vetch.

He also grows Moby barley and Pinevale wheat for hay, produces oaten hay to sell and feed to his Angus breeders, has an oat/vetch mix, pure clover and does two cuts of ryegrass pasture.

"I do an early cut and a late cut on the ryegrass pasture because the later cut has a lower sugar content and is suited to the horse market," he said.

"A lot of the early cut goes to sheep and cattle."

Mr Tucker said he couldn't complain about seasonal conditions, with a late start followed by a wet July and a dry August.

He is expecting hay quality to be good this season, but is wary of forecasts suggesting a potential wet spring.

Outside of his regular buyers, Mr Tucker expects demand to be sluggish until next year.

"I'd say demand across the board might be slow for a while because there's going to be a fair bit of paddock feed so it might not kick off until February/March next year," he said.

"I don't think we'll sell a huge amount until then."

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