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Hay supplies to be tested | “We’re still in a short supply situation for most varieties of fodder”

Drought impacted farmers are continuing to pay high prices for feed, as they wait for new season hay to come onto the market.

Feed volumes for livestock are in a precarious position as dry conditions persist across the country.

Australian Fodder Industry Association Chief Executive John McKew told Macquarie’s Rural Reporter Eddie Summerfield, supply is tight.

“We’re still in a short supply situation for most varieties of fodder,” Mr McKew said.

Cereal grain prices continue to be at high levels, at around $400-$500 per tonne.

“Because of the short supply the prices have been very high, and continue to be very high at this point in time,” Mr McKew said.

“I think we’re starting to see some buyer resistance, there’s only so much available in terms of cash-flow to keep pouring into buying fodder, if you can afford it.”

Relief from high pricing could come as soon as later this year, following above average rainfall in winter in parts of South West Victoria, and parts of South Australia this Winter.

“If Spring is kind to us in South East South Australia, and throughout Victoria, the crops the way many of them are looking at the moment, we should have a pretty good harvest.”

Listen to the full interview above with John and Eddie discuss the impact of high prices on farmers, and the role of subsidies.

Subscribe to the National Rural News podcast: http://bit.ly/RuralNewsPodcast

Download this podcast here

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