Export Hay tonnages up 19 percent in 2017
- By: "Farm Tender" News
- Water & Irrigation News
- Apr 13, 2018
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By Peter Gillett for AFIA
It has been mooted for a couple of years as to when the export of hay and straw would top one million tonnes. That figure was well and truly left behind in 2017.
See year on year comparison in images
The surprise was the 50% increase in volumes exported to Korea. This was mainly due to drought conditions which minimized local grown hay. China was expected to increase their imports of hay but exceeded estimates with a 43% increase.
The start to the 2017/18 season was mixed. Victoria and New South Wales had a reasonable run with about two thirds of the hay crop baled up with no rain. The new crop appears to be reasonably split into all grades, but has a carry-over
from the previous season of 100,000–120,000 mt. Most of this is lower grade hay.
South Australia had a good season with yields slightly below average but the majority of the hay fitting into the top three grades. There was a substantial carry over of hay as was the case across Australia.
Western Australia had a baling season with constant rain events, and thus very little top-quality hay was baled. The majority was mid to lower grade hay. Western Australian exporters were lucky to have a lot of the carry-over being good quality hay.
The prices for hay to export markets is slightly lower than last year with the Chinese market under the greatest price pressure, mainly, one would have to assume, because they grew a reported 500,000 mt of their own oaten hay in the last year.
The volumes being exported so far this year are strong, even though it is a challenge to move the lower grade hay where the price is under considerable pressure. The volumes being moved does give confidence for the coming year.
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