Southern Demand Challenging National Supply: a Market Update with Dave Clothier

This week, Jon Paul Driver catches up with National Sales Manager, Dave Clothier, for a market update, discussing current trends in the hay market. Although there remains a significant volume of hay on the market, much of the product is currently only available in smaller lots. All grades of hay, including weather-damaged products from last season, are selling quickly – a positive sign as we head into a new season. Nationally, hay prices are stable but are rising for quality cereal and vetch lines due to strong demand. This healthy demand is setting the stage for what could be a very promising new season.

Episode Highlights:

  • Recent rainfall across the eastern seaboard has had minimal impact on reducing fodder demand.
  • The EOFY is influencing decision making. Some growers are choosing to defer payments and buyers are deciding between filling on-farm storage now or in the new financial year.
  • Demand is high and driven from the south, spreading into the north; all grades are selling well which bodes well for the new season.
  • Beef prices are expected to remain strong for the next few years, supported by exceptional seasons and high livestock numbers in QLD, NT, and NSW. High calving and weaning rates are expected to continue boosting supply on the eastern seaboard.
  • In WA, dry conditions are leading to increased livestock movement to eastern graziers and into abattoirs.
  • While there is still a significant volume of hay available, it is distributed in smaller lots, making it challenging to secure large quantities. All grades are available, but larger lines of quality hay are scarce.
  • The rapid sale of all hay grades, including weather-damaged stock, is setting the industry up for a promising new season. Unlike last year, when quality hay was left on pads due to limited shed space and faced higher risks, the current situation looks much more favourable for the upcoming season.
  • Across the board, hay prices are firm, except for quality cereal grades where prices are rising due to demand.

Author

  • Tim Ford

    In 2002, Tim established Feed Central, leveraging over many years of professional hay and agricultural experience domestically and internationally. Tim was born and bred in the Riverina and has travelled extensively within domestically and internationally to learn more about hay and the national and international fodder markets. Tim is a sought-after media commentor on matters relating to the fodder industry and often advises corporate and family companies on hay procurement and marketing strategies. Tim advises all levels of government on matters relating to the industry and was a member of the Prime Minister’s Drought Task Force during the 2017 -2020 drought. Tim is both a strategist and innovator leveraging digital solutions to drive people and client centric solutions across the industry.

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