Pressure increases on fodder supplies

FODDER could be harder to get and more expensive this season in a double whammy for livestock producers across eastern Australia.

Lack of spring rain could see less fodder made, with concerns about future hay supplies raised at the industry’s national conference in Adelaide this week.

Australian Fodder Industry Association chief executive John McKew said members agreed the coming season could see a far lighter supply.

“Our members are not despondent but there are pretty restrictive seasonal conditions,” Mr McKew said.

“They have some crops with good potential but they need rain.

“It could mean that exporters who have supply contracts to fill will be out there competing heavily for crops so they may have to pay more to secure supplies.”

The situation is a far cry from six months ago, when two seasons of crops were sitting in and beside sheds.

He said hay was still moving north into NSW and Queensland in a steady flow.

“We have essentially sold two seasons’ worth of hay in six months and supply at the moment is very tight,” Mr McKew said.

“There may be hay around that is still for sale and still could come on to the market.

“People will be reassessing what they really need and perhaps putting the rest up for sale. There is hay about but supplies are dwindling rapidly and the fodder supply situation has not improved and won’t improve until the new season’s crop is available.”

He said there were sheds full of hay, but much of this has already been sold and is awaiting delivery.

Mr McKew said members had mixed emotions about the current situation.

They were happy to be able to shift two years of stocks and improved prices, but shared concerns about the dry season and the potential impacts on their businesses this year.