Hay Report - New Hay making method has supporters but.....

For the fortnight up to the 11th of October 2023.

By Dwain Duxson

It's been a solid start to the new Hay season despite the hiccup of some rain. Many thought it was a good hiccup as the rain would be considered more valuable to the Crops and Pastures as opposed to the loss of the downgrading of a bit of Hay. But to add to that, many of the Hay areas through SA, Western and South Western Victoria missed out on any sort of decent rain.

The quality of the Vetch Hay that was baled before the rain is looking good. There will be some slight devaluing of the stuff that had rain on it, but we are back into a dryer period again, so anything cut post the rain should be right. 

To add to that, Shane said below, "We are starting to see Feed Tests come in with a slight dip in protein, but the ME & NDF are a lot better than past years".

New season Vetch is in demand, and we expect we should see some activity once those tests start rolling in. See where the prices are at below. 

Transport costs are a killer. This, and current Livestock prices, will restrict the number of tonnes that go from the South to the North this year.

We wrote an article about the accelerated drying method for Hay, which some are taking to the next level this year. There has been quite a bit of research gone into this by some of the leading Hay makers in the Country. Read the article here. It's an interesting concept, and I can see the benefits if they get it right.

We had a reply to the article from a Farmer who is a supporter of the method but just can't see it getting adopted on mass. See what she said below.

The accelerated drying method is based on the premise that a premium product demands a premium return. Accelerated method Hay incurring $30-$50 a tonne in additional processing costs will then need to attract a premium. Bearing in mind the $30-$50 is cost only, so to demand a premium return and cover costs, this Hay requires a premium of $70-$100 a tonne above traditionally made Hay. Other than a few niche high-end users, will the broader markets be receptive?

It could be appealing, to say, a fine-tuned Dairy who's analysing every module of energy – but there's a limit to that dollar value of input vs output, of course. And we are at liberty of the same market forces like our spiralling Livestock market. And there are added complications surrounding storage and management post-Baling of the accelerated product.

Both traditional and accelerated have different applications, and a Hay program yielding 150 bales is an entirely different beast from shedding 5000-8000 bales.

It is not a comparable lasting Ag system improvement like ceasing mulesing, running smaller Lambing mobs or high-density Balers. Those are permanent and sustainable improvements to a program, and you don't go back to the old ways from there. The accelerated drying method is a tool in Hay production, not something you transition to and never look back.

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

New season Vetch is in demand, and with the Hay tests rolling in, we expect to move some of that over the coming weeks. Vetch Hay has been selling for $275-$300 a tonne out of the paddock, and those that are Shedding it are looking for $350 a tonne, but the market is not there yet.

All the prices below are still old season.

Old season Vetch is selling for $150 to $200 a tonne.

Good quality Lucerne Hay is selling for between $350 and $400 a tonne. 

Pasture Hay is selling for around $130 to $150 a tonne.

The very best Cereal Hay is making up to $250 a tonne.

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

Paul Grayling - Mallee, Vic based

Paul said - How a couple of weeks can change things? I have been away for the past fortnight in Vietnam. Prior to leaving, most areas were gearing up for a stronger Hay finish than a Grain finish. When I returned, I tipped out 42mm from the gauge and, after finding my feet noticed that for the vast majority, that has done a total 180. Since being back in the saddle, I have spoken to a fair few prospective Vetch buyers looking for some Quality Hay. I think the market will heat up over the next month or so with quite a few Dairy Farmers looking to secure parcels of good quality product. Hopefully, we can break the cycle of the last few years and get back to producing some quality Hay. 

Shane Ruyg - Qld based

Shane said - It was a great start to Hay season with some good parcels of Vetch Hay baled but then again we received some untimely rain that has slowed the job down and caused some minor damage to the look of the Hay. We are starting to see Feed Tests come in with a slight dip in protein, but the ME and NDF are a lot better than in past years. We have had some good sales and inspecting more to come on the market in the coming fortnight.

Mike Pickard - On the road

Mike said - In our travels through the Eyre Peninsula, SA, there is a lot of Hay being cut as well as Crops being Harvested. New season Vetch Hay is in high demand if it's priced right. Last years Hay is still in demand as prices are coming down to make room in Sheds for new season stuff. Talking to a Hay buyer in Queensland, he is likening the inquiry to the 2019 drought. So far, he is sourcing failed Crop in Northern New South Wales and Qld. Once this runs out, they will have to look at Hay being freighted up from South Australia and Victoria.

Jim Oehms - Northern Country, Vic based

Jim said - We are starting to see new season Hay come onto the platform and a lot of this is being picked up straight away. People will be getting a better idea of what their Hay will sell for now. I spoke to a Farmer up Gunnedah way, and he said that they are selling Hay off their paddocks even before it is baled. We have tended to put this down to rising transport costs, and people are buying as close to them as possible to overcome these costs.

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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