Basis Commodities – Australian Hay Update – Monday 26th February 2023

The Growing and Bailing season for the Australian hay industry has concluded for the 2022/23 season. It is around this time that production numbers and quality can be quantified, and the results of the season are reported. The total production for the 2022/23 season is estimated at 11.2MMT of fodder production with an exportable quantity of 950TMT. The bulk of the tonnage will head to traditional markets such as Japan (450TMT), Korea (250TMT), Taiwan (100TMT). China (140TMT) & Middle East (10TMT).

This growing season showed significant promise with Victoria and South Australia starting off very well with good rain and ideal growing conditions throughout the plant growth stages. Yields appeared to be heading towards average and quality was looking positive. During the latter part of October and early November, after the hay was cut, significant rainfall was received prior to bailing leaving that hay quality severely affected. Much of the Victorian and South Australian hay failed export quality with high NDF, low WSC and visually very poor. This unfortunately meant that Victorian and South Australian production was excluded from the export balance sheet for this season.

The growing season in Western Australia however started off positively with timely rain and good conditions throughout the plant growth stages. Yields were well above average and cutting/bailing conditions were positive providing export grade hay. While there were some areas that will be rain affected, only a portion of the production was damaged and the bulk of the export capacity for Australia for this season will come from the West. The challenge now is the limited supply that is available due to the high demand from traditional markets in Asia.

During February, BALCO Australia announced their expansion into Victoria with the purchase of a hay packing facility in Raywood. This acquisition will provide a further 80,000 tonnes of annual capacity for BALCO increasing their total annual export capabilities across their three sites to 300,000 tonnes. With BALCO Australia’s ever-growing presence in the Middle East, this acquisition will provide further support and price competitiveness into the region.

Importers are encouraged to speak with Basis Commodities about their requirements so a quality profile can be created to program deliveries without disruption with BALCO Australia.

Please contact Nader Hassan or Steven Foote, who are available to support any fodder needs for the season. 

Steven Foote
Sydney, Australia
M:0408 308 908

Nader Hassan
Dubai, UAE

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