Apr 21, 2023

Basis Commodities – Australian Hay Update – Thursday 20th April 2023

In this month’s report, we will examine the current state of the Australian oaten hay industry, including its production, export, and market trends.

The industry has been an important part of the country’s agricultural sector, with oaten hay production and exports contributing significantly to the national economy.

Production:

According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the production of oaten hay in Australia has been relatively stable over the past few years. In 2022-2023, the country produced approximately 11 million tonnes of oaten hay. The main states producing oaten hay in Australia are Western Australia, Victoria, South Australia, and New South Wales. In an average season, there will be approximately 900k to 1.1M metric tonnes of exportable surplus with the balance crop being consumed domestically.

Exports:

The Australian oaten hay industry is reliant on exports, with the top quality representing 10-12% of its production destined for overseas markets. Japan, Korea, China, and Taiwan are the main destinations for Australian oaten hay exports. According to ABARES, the value of oaten hay exports in 2022-2023 is around $349 million. The capacity to export Oaten Hay with the various Hay Companies and their production plants is approximately 1.3M metric tonnes exceeding the typical available production quantity. The difference in the production capability and the export capacity is quality, as the export market demands the highest quality for the international dairy sector. Australia has had several seasons where weather events have damaged the crop at critical period during harvest downgrading crop quality.

Market Trends:

The demand for oaten hay has been driven by a range of factors, including the growth of the dairy industry in Asia, particularly in China, and the increasing demand for premium hay products in Japan, Korea and the developing Middle Eastern Markets. Australian oaten hay is known for its high-quality, and the country’s strict quarantine and biosecurity standards have helped to ensure that it is a reliable and safe product for export.

The COVID-19 pandemic has had a limited impact on the Australian oaten hay industry, with the major markets continuing to show strong demand. However, there have been logistical challenges, particularly around shipping and transport, which have led to higher freight costs and delays. The trend for the second half of 2023 and beyond is that freight rates will soften and improved services will enhance opportunities especially to The Middle East and Africa from Australia.

Conclusion:

The Australian oaten hay industry is an important part of the country’s agricultural sector, with strong demand from overseas markets. While production has been relatively stable, the industry faces ongoing challenges around freight costs and transport logistics. However, the industry’s reputation for producing high-quality, safe, and reliable products means that it is well-positioned to continue to grow and expand in the future.

Importers are encouraged to speak to Basis Commodities about their requirements so a quality profile can be created to provide deliveries without disruption in conjunction with our key supplier 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 – Thursday 20th April 2023 appeared first on Basis Commodities.

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Australian Hay Update – Monday 29th April 2024

29 Apr, 2024

The 2024/25 season for Australian Oaten Hay has started with sowing well underway for all growing areas. The initial expectation for the upcoming year is much the same as the current season where we saw a significant increase in acreage planted and a higher than average quality profile. With the return to normal freight rates despite the international pressures and an Australian Dollar that has been well below the 0.700 cent handle for much of the past 12 months, there has never been a better time for exporters of Australian Oaten Hay to develop new markets. Growth in interest has been seen from the Middle Eastern markets with the integration of Oaten Hay to the ration alongside alfalfa with excellent results forthcoming. As part of the Basis Commodities service offering, we like to share our insights and knowledge on our products to better support our customers. Please enjoy this report on the various considerations for Oaten Hay during the growing stage as well as our future reports in the coming months as we head towards new crop which is due for export in October/November 2024. Australian Oaten Hay: Despite the concerns with a drier season for cereal crops, less moisture, particularly at the end of the hay growing season produces a far better product to suit the dairy and livestock industries. In this month’s report, we will explain the reasons why less rainfall can actually benefit an oaten hay crop. Fibre Length and Thickness: Too much moisture during the growth cycle of an oaten hay crop will produce thicker stems and longer fibre lengths which reduces the feed test value. This is due to the nutrients of the plant being spread across a larger fibre length diluting the high levels of water soluble carbohydrates (sugar content important for palatability) and increasing the acid and neutral detergent fibres leading towards poor fibre digestion and absorption rates Lodging: Lodging is defined as the permanent displacement of a stem from a vertical posture. It is often caused by high wind speeds, made worse by wet conditions. It can happen quickly or relatively slowly, with stems initially leaning, then falling under the pressure. If too much water is received on an oaten hay crop, the plant may grow beyond a stable position and fall over. This is because the root system of the plant has not penetrated deeply enough through the soil as it has not had to search too far for moisture. The plant falls and then regrows which renders the crop unusable due to soil contamination.

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