Episode Highlights:

• Equi-Analytical was launched in June 2004 in response to the equine industry's need for specialised hay and pasture testing.
• Known for its robust NIR technology calibrations, Equi-Analytical licenses these globally.
• Equi-Analytical's launch in Australia will benefit the local equine market by reducing testing turnaround times for some services.
• Hay might be tested for many reasons such as to choose the best feed, or to assess the available feed to determine if supplementation may be required to meet your equine’s nutritional needs.
• Many metabolic health issues in horses, such as Cushing's Syndrome or Insulin Resistance, can be greatly improved by managing their diet.
• Hay corers help ensure accurate forage testing by collecting representative samples. They are available for purchase through Feed Central, or to borrow through some nutritionists, pony clubs, and rural stores.
• In the lab, samples are ground to a 1mm particle size, with only 60ml used for analysis at Feed Central. This highlights the importance of accurate in-lab and on-farm sampling given the small amount tested from potentially large sources.
• The Feed Composition Library on the Equi-Analytical website is a useful resource to compare forage test results with typical grass and hay profiles, providing a helpful starting point for understanding the numbers.
• Nutritional requirements will vary based on individual variations such as breed, age, and workload.
• After testing, it's best to take the results to a vet or nutritionist for advice for your circumstances. Alternatively, you can use nutrition software like FeedXL to import the data and identify dietary needs yourself.

This week on the podcast, Jon Paul Driver sits down with Shaun Hann, the Manager at Toowoomba Hay Farm, to discuss his firsthand experiences after one of their storage facilities was declared to be in a fire ant zone. Shaun shares how this unexpected challenge has impacted their operations, the new regulations they are navigating, and the practical steps they are taking to remain fire ant free and compliant.

Episode Highlights:

• The recent discovery of fire ants just kilometres away from Toowoomba Hay Farm's Oakey storage facility has necessitated a rapid educational and operational response to comply with stringent biosecurity standards.
• Fire ants, known for their destructive impact on crops and painful stings, represent a significant agricultural and public health threat.
• Following the identification of a fire ant nest in May, a five-kilometre contamination zone was established around the nest site, placing Toowoomba Hay Farm’s Oakey storage facility within this high-alert area.
• Fortunately, Toowoomba Hay Farm’s storage facilities already had bitumen and concrete flooring, but has taken additional biosecurity measures, including setting up chemical barriers and updating storage protocols, to prevent the spread of ants.
• Staff at the facility underwent extensive training and received certifications in fire ant management, ensuring preparedness and compliance with the National Fire Ant Eradication Program and Queensland's Biosecurity 2016 guidelines.
• Toowoomba Hay Farm has adopted additional safety protocols, including weekly inspections and advanced pest control treatments, to proactively exceed governmental requirements.
• The ongoing government-led baiting and chemical treatments aim to reduce the spread of the ant colonies, with the storage facility's status remaining in Zone One, indicating continued high vigilance and control efforts.
• The potential downgrade of the contamination zone from Zone One to Zone Two remains uncertain, which could impact future plans and costs.

Visit the Feed Central website for helpful tips on biosecurity, along with training, and certification resources compiled by the team after their experience in a fire ant zone: https://www.feedcentral.com.au/fire-ant-resources/

Episode Highlights:

• Recent rainfall across the eastern seaboard has had minimal impact on reducing fodder demand.
• The EOFY is influencing decision making. Some growers are choosing to defer payments and buyers are deciding between filling on-farm storage now or in the new financial year.
• Demand is high and driven from the south, spreading into the north; all grades are selling well which bodes well for the new season.
• Beef prices are expected to remain strong for the next few years, supported by exceptional seasons and high livestock numbers in QLD, NT, and NSW. High calving and weaning rates are expected to continue boosting supply on the eastern seaboard.
• In WA, dry conditions are leading to increased livestock movement to eastern graziers and into abattoirs.
• While there is still a significant volume of hay available, it is distributed in smaller lots, making it challenging to secure large quantities. All grades are available, but larger lines of quality hay are scarce.
• The rapid sale of all hay grades, including weather-damaged stock, is setting the industry up for a promising new season. Unlike last year, when quality hay was left on pads due to limited shed space and faced higher risks, the current situation looks much more favourable for the upcoming season.
• Across the board, hay prices are firm, except for quality cereal grades where prices are rising due to demand.

Episode Highlights:

• There are concerns about potential oversupply in both Australia and the US. Natural events like droughts and floods regulate this supply to some extent. However, there is a limit to how much the market, especially in Asia, can absorb.
• There is a severe supermarket duopoly in Australia which is currently a major topic at the federal government level. This market dominance is not only impacting consumers who are already paying high prices but even more so for suppliers and growers, who are facing severe disadvantages.
• There's a need to ensure that growers can sustain their businesses, and at the same time, it's crucial to make products affordable so customers can also maintain sustainable operations.
• Opportunities in China's dairy industry are emerging as the market reopens after political issues and companies remain understandably cautious. If managed well, however, China could become a significant market again.
• Despite China's reopening, it's wise to also consider other regions. The Middle East, for instance, presents a substantial opportunity for the export market due to its potential for growth.
• Emerging markets, particularly in Southeast Asia, are demanding higher-quality products and proteins. The region cannot produce feed sources as efficiently as Australia, presenting opportunities for sustainable and profitable exports.

Episode Highlights:

• Each export company in Australia has its own procurement matrix, lacking a single industry standard.
• R&D priority is shifting to focus more deliberately on the animal performance contribution value.
• There are ironies in the industry: breeding for some desired stem sizes can be counterproductive for animal performance, even when buyers are accustomed to a those sizes, for example.
• Due to these complexities, RD&EE (Research, Development, Education, and Extension) are crucial.
• While it may seem like there is competition for supply from different countries, the focus on animal productivity and growing the industry increases the overall market, benefiting everyone.
• In a growing market, everyone wins, whereas mature markets lead to competition over market share.
• Current investments in Australian export fodder focus on health and wellbeing for the future.
• Weather-damaged product is a major contributor to lower gross margins for hay growers in Australia. Investments in mitigating this issue can positively impact profitability.
• Conditioning the hay reduces the risk of rain damage by reducing drying time. Focusing on shortening the dry-down period can significantly improve contribution value.
• Using a tedder rake can hasten the drying process but increases the risk of losing colour. This problem has made people hesitant to adopt teddering.
• US tedders don’t spread the hay out; they fluff the windrows to promote airflow through them.

Podcast

This week, Jon Paul Driver is joined by Pat Guerin in a special two part episode to discuss some of the many opportunities in the Australian hay industry. The discussion covers the need for industry-wide standards, a shifting R&D focus towards animal performance, and tackling challenges like weather damage and drying processes. It also highlights the importance of collaborative growth in the export market.

Pat Guerin has a strong technical background in the hay industry. His career includes managing large hay export facilities in South Australia and Western Australia, and a background in agronomy and animal nutrition.

Episode Highlights:

• There are significant opportunities to increase the value from research and development investments.
• AgriFutures, the peak government body, oversees 16 different industries, managing their R&D strategic plans.
• R&D investments benefit the entire process chain, not just the grower or plant breeder.
• Over the past 10-20 years, there have been significant productivity increases in the grain sector, making hay less competitive in crop rotations.
• To achieve high yields and improve production quality, the hay growing system needs modification.
• Key components like optimising the plant's response to light and cold are not inbred in the oat and hay varieties used in Australia.
• There is room to improve production quality in the oat and hay industry by incorporating traits like photoperiodism and vernalisation, which are currently lacking in Australian varieties.
• Focusing on these areas presents an opportunity to achieve higher yield values alongside better quality.

Episode Highlights:

• We are a country of extremes, with warmer temperatures and rainfall as high as 30% above average experienced recently across Queensland and New South Wales. Meanwhile, drier weather has intensified southward through Victoria, Tasmania, and South Australia, with Western Australia experiencing considerable drought.
• High temperatures are anticipated until the end of July. This will sustain pasture growth and provide security for graziers.
• Demand has still lifted considerably for all grades of fodder in expectation of colder weather.
• Beef cattle herds are at their highest since 2014, with excellent conditions and abundant feed driving up livestock numbers and boosting global exports, especially with US herd numbers low.
• Now more than ever, clients are more informed, asking for feed test results and making well-researched decisions, which is a positive development for the industry.
• The availability of quality hay is moving further south, increasing freight costs. It's wise to make informed decisions now to avoid higher freight charges in the future.
• Some growers are holding onto their product if they don’t need immediate cash flow, while others are negotiating to clear their sheds.
• Delivered prices remain similar to competitive price levels we saw last summer, but the benefit from lowered prices is offset by increased distance and freight costs in some regions.
• There is currently plenty of product available, but the approach of EOFY is a good time to secure feed while supplies are closer, reducing freight distance and costs.

Episode Highlights:

• Founded in 1990 in Balaklava, Balco was created to fill a community need for economic development and an operational need for streamlining within the export hay industry.
• The company has experienced continuous growth, starting from selling grain for leaf grain, before moving into hay pressing, and now makes and purchases hay for export from its site in Bowman and three other states.
• The investment into research and development means that hay is now grown better, compressed more efficiently, and loaded faster.
• There is now greater precision in the industry, as farmers increasingly focus on the business aspects, such as gross margins and profitability.
• A key benefit of the hay industry is the added income for dryland farmers; cash flow from hay sales typically arrives in October and November, providing an earlier financial boost ahead of grain harvests in December.
• Innovation in the industry hinges on maintaining farmer engagement in the developmental process and continuously refreshing practices, ensuring farmers remain confident in the industry's future.
• The industry has opportunities to revise bale dimensions and enable on-farm packing, thereby reducing the costs associated with mixing and high-density compression for export.
• The Exporters Association has helped exporters work together more closely towards common goals and innovation in the industry over the last decade, and has a strong commitment to continue these efforts into the future.
• To export hay economically, it must be compressed in the country of origin, and as the market adopts high-density balers and crimping techniques for faster drying, the hay industry is being taken to the next level.

Episode Highlights:

• A variety of rain events have impacted key hay growing areas recently, with some areas seeing up to 50mm while others have been left dry.
• Most grazing crops have already been planted from central NSW down into parts of Victoria, and some farmers will be grazing to a certain growth stage before making hay. Most hay growers won't be planting until after ANZAC Day.
• To diversify risk and take advantage of opportunities for grain or hay, growers need to look at the history of the paddock, whether it's prone to frost, and options for weed control and fertilising.
• It's important to track the pesticides used on crops as both domestic and international hay sales require a CVD (Commodity Vendor Declaration).
• The Wimmera Mallee country is seeing lupins and lentils compete with vetch in some regions; meanwhile, the canola price is down and growers are moving from canola back into cereal hay due to price and marketing opportunities.
• In areas that didn't receive rain, some growers are choosing to plant dry, which can be a balancing act as the ground has to be dry enough to plant and wet enough to germinate.
• It's been an extremely good season for hay production in the majority of areas, but there is still some two year old hay on the market which may be lower quality due to damage; it's important to feed test and visually inspect the hay to establish the quality.
• Although we're a long way off from making straw, there remains concern from last season's purchasing decisions made by Darling Downs Feedlots, which heavily concentrated on their local area. This may lead to more caution by southern straw growers this season who missed out on sales.
• While the price of balers has increased, many more machines are appearing on the second hand market.
• For growers looking to utilise a contractor at the end of the season, it's important to start looking now or talk to existing contractors to ensure availability.
• The hope is for a good curing period to produce quality hay, and that means having those sheds ready. Make sure that they are set up, clean, and ready to store hay.
• The key to a good season is preparation, capitalising on opportunities, and reduce risk by having options for grains or hay based on the conditions.

• 1.2 million tonnes of Australian hay and straw goes for export each year, with 99% of that being dryland farming, planted in between the end of April and early June, made up primarily of oaten or cereal hay.
• Two key factors are crucial in oaten hay: Water Soluble Carbohydrates (WSC) and Neutral Detergent Fibre (NDF), while there are lower amounts of protein, averaging 5-8.5%.
• Balco rigorously maintains quality control throughout the export process. This involves inspecting fields immediately after seeding, monitoring for weed contamination during growth, core testing 20% of the product, and taking mixed samples that represent the entire field.
• A crucial aspect of the export process is ensuring the hay tests negative for Annual Ryegrass Toxicity (ARGT) before it is shipped.
• Export hay contracts operate somewhat differently from grain contracts. They are based on the area of land (hectares) rather than volume, with a cap on the tonnes exported in a good season. Importantly, there is no penalty for the seller if adverse conditions, like drought, lead to a reduced yield.
• Rob recently visited El Centro and Ellensburg in the USA, as well as Korea, Japan, and China. He observed that, following price crashes last year, exporters were holding onto their product, hoping for a price increase to avoid realising their losses.
• A positive development last year was the restoration of the Chinese market for Australian exports for the first time since the COVID-19 pandemic. Additionally, shipping rates have started to decrease for the first time in a while. Due to its geographical location, Australia is often the last to experience the benefits of changes in the export market.
• Currently, Australia boasts a variety of mid to high-grade hays. Coinciding with the return to normalcy of the Chinese market, this situation has positioned the Australian export market favourably.
• Currently, the global dairy industry is under pressure, and it may take some time to stabilise.
• Ensuring oaten hay is competitively priced to offer fair returns to growers is crucial. In every supply chain, each participant playing a significant role must be able to profit. If, for an extended period, someone earns a disproportionate profit, it's almost certain that the supply chain will collapse within a year or two.
• Rob shares a message of cautious optimism in the oaten hay space, highlighting stability.