Feb 27, 2023

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
E: steven@basiscommodities.com

Nader Hassan
Dubai, UAE
M: +971566915688
E: nader@basiscommodities.com

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The post Basis Commodities – Australian Hay Update – Monday 26th February 2023 appeared first on Basis Commodities.

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Basis Commodities expands service offering to soybeans.

18 Apr, 2024

In late 2023, Basis Commodities successfully executed its first shipment of premium non genetically modified soybeans from Romania to Egypt, via two small vessels. Basis has many years of experience managing trade flows and relationships within the Middle East and we were pleased when the opportunity to add a new product – Soybeans – arose out of discussions with our suppliers in Romania and buyers in Egypt. To ensure the safe arrival of the produce, the company worked with several parties to facilitate the execution of this new flow for the company including managing due diligence, testing, insurance and contract execution. Soybeans are a primary source of protein and edible oil, making them essential for human nutrition. The largest producers of soybeans in the world are the United States, Brazil, and Argentina. These countries account for most of the global soybean production. Ukraine is the leading exporter of soybeans in Europe. However, Romania is seeing growth in this market after a long hiatus. This growth can be attributed to various factors including increased demand for soybeans globally, improvements in agricultural technology, and favourable climatic conditions for soybean cultivation in Romania. Egypt is among the top importers of soybeans in the world. The country imports large quantities of soybean, primarily for the production of soybean meal, a key ingredient in animal feed formulations. The country's growing population and expanding livestock sector contribute to the increasing demand for soybeans as a source of protein-rich feed. Basis Commodities General Manager in Dubai, Nader Ahmed said assisting companies making connections in the movement of soft commodities is a speciality of the company “we are committed to fostering international trade partnerships and promoting the exchange of quality agricultural products in the Middle East” and “We’re proud to have played a role in bringing premium soybeans into Egypts market”. For more information on how Basis Commodities and assist your business, reach out to the team on the details below