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A leading Australian feed trader has debunked claims the hay market is in decline.
Feed Central managing director Tim Ford said demand for hay remained strong and good quality product would continue to fetch good prices.
“Everyone’s talking about there being a big hay crop and talking the market down, but there is strong demand for hay and shortage of quality product,” he said.
“We’re in the market looking for product to meet that demand.”
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Mr Ford said last year’s drought, low stockpiles in hay sheds, difficulties in accessing some supplies due to wet weather, and strong demand from the beef sector and exports had combined to keep the market strong.
“Some are talking the market down but we have an alternative view – at the moment there is a shortage and we have buyers,” he said.
Mr Ford said the cold and wet winter across Australia had been good for trade but could lead to access and quality problems.
“It has been a good growing season but there have been problems with cattle getting on the paddocks and bogging paddocks, which leads to strong demand for hay. Every hayshed in the country is empty and there’s no carry-over of stock but customers still want product,” he said.
Mr Ford said many growers had been unable to apply fertiliser due to the wet weather and waterlogging could also affect future yields. But demand remains strong.
“The beef market is very strong with an increased demand for hay and at some point the dairy industry will recover,” he said.
Mr Ford said there was a risk of a lot of poor quality hay because of the wet conditions but good growers would get good returns.
“The professional grower who makes good quality hay should and will be rewarded for their efforts and get very good returns,” he said.
The export market remains strong and the significant price setter, particularly in Victoria. Mr Ford said if the export hay market set the price at more than $200 a tonne, domestic growers would be happy with a discount off that while maintaining good prices.
“There’s no need to give it away,” he said.
- Need to know more? feedcentral.com.au
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