Hay Report - Caution on Hay supplies

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For the fortnight up to the 21st of February 2023.

By Dwain Duxson

It was interesting to hear comments from Vic Dohle from Green & Gold Hay Contracting at FarmTender2023 - The Business of Farming event last Friday. Vic said Green & Gold had baled between 60,000 and 140,000 bales of Hay each year since they started out. This year they did 80,000 bales from October to February, which is a month later than usual.

I found it interesting that of the 80,000 bales done, 50 percent was Hay, but the other 50 percent was Straw. Vic said it was the first time ever that Straw was half the contract book.

Vic seemed to think that if we get through this year with regular demand, we will be fine for supply. But she did caution about the possibility that if we have a late break or it turns dry, we may run out. Gee, we are going to need a good Hay season this year, we have been saying that for a few years now.

Nigel Kerin (Kerin Ag, Yoeval, NSW) also spoke at the event, and he said we need to aim for more of a win/win situation in Ag. In the last drought, when Queensland and New South Wales buyers were paying high Hay prices on top of large freight bills, a win/win it wasn't. It was a win for the seller and a loss for the buyer. I put this to Vic and asked how we turn it into more of a win/win scenario. She outlined that in situations like this, and when selling their own Hay, they would sell it cheaper than the spot market price at the time, in order to have a return client the next year and beyond.

As outlined a fortnight ago, we are seeing lots of Vetch Seed sales, and this will more than likely lead to higher-than-normal Vetch plantings. We certainly need to overflow the coffers with quality Vetch Hay this season.

The Weekly Times reports that Hay Exporters are scrambling to find good enough "exportable" Hay. However, the export sector is underpinning Cerael Hay prices at the moment. Weekly Times Hay analyst Colin Peace said, "It could appear that the export sector is an unnecessary competitor for domestic livestock producers, but without a viable export sector, the production of cereal hay would collapse. In fact, the two demand sectors complement each other".

What's happened to Hay prices over the last fortnight?

Good Lucerne Hay is still selling for $350 a tonne.

Most Straw is selling for around $90 a tonne, but we had some better stuff make $110 a tonne.

Most of the Vetch Hay we sold was around $200 a tonne and below. 

Cereal Hay is a bit all over the shop, and it is very dependent on the quality.

We go around the grounds to see what our Farm Tender Salespeople have to say:

Paul Grayling - Mallee, Vic based

Paul said - Over the past fortnight, I have spoken to a few active Hay buyers who are struggling to find the correct article, with a fair few chasing quality Cereals. Whilst there are plenty of options out there, not all are suitable, some due to rain or weather on them but others due to no Feed tests available. The same can be said with Straw, although it's not commonplace to Feed test Straw in a year like this, I believe its a great option as it shows the exact feed value of the product and make an argument for Hay v's Straw. If you haven't already, my advice is to get it tested, its a very handy selling tool. 

Shane Ruyg - Qld based

Shane said - A bits and pieces fortnight on the Hay job with buyers grabbing a load here and there without the big purchases. A few parcels of Straw are starting to move along with a few loads of Lucerne and Cereal Hay. In general still very quiet, but the enquiries are coming in, and hopefully, we will start seeing a lot more move in the coming weeks and months.

Mike Pickard - Travelling around 

Mike said - Good sales of second-grade Lucerne Hay in Central New South Wales at $350 per metric tonne to feed Weaner Calves. Lentil Ryegrass Hay sold in South West- Central Victoria for around $170 per tonne. Buyers are out there looking for the best quality Hay they can possibly get for their money, but they are coming up short in as what is left doesn't have great Feed tests.

Jim Oehms - Northern Country, Vic based

Jim said - I am a bit new to the Hay side of things as I have just switched over from Auctions to Farm Tender sales and Auctions combined. 

From my recent discussions, Oaten, Wheaten, and Vetch Hay are being sought a little more, with price and location being the key ingredient. As I get more into the Hay and Grain, I will be able to give you better insights.

End of message

For more information on selling or buying Hay contact the following:

Paul Grayling – 0447 069 082 or paulg@farmtender.com.au

Shane Ruyg – 0447 922 604 or shaner@farmtender.com.au

Mike Pickard – 0429 677 636 or mikep@farmtender.com.au

Jim Oehms -- 0481 102 288 or jimo@farmtender.com.au

Or 1300 Farming (1300 327 646)

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