Tim Ford, Director:

• While there has been recent rain, many areas continue to experience a "green drought" with slow grass growth, particularly in the intensive grazing and dairy regions of Southern Victoria and South Australia.
• Despite some growth stimulated by summer rain, a dry autumn and delayed onset of winter have led to significant feed gaps and strong demand for hay, which has shifted industry dynamics.
• Historically, intensive dairy areas produced their own silage; however, this year has seen a substantial southward movement of hay from northern Victoria and Southern New South Wales, disrupting established supply chains.
• Reports indicate a disconnection between hay producers and consumers, possibly due to lost relationships and a general lack of knowledge on how to secure hay supplies, further complicated by changes in business ownership and succession planning.
• Feed Central has been facilitating the procurement of necessary feed since the 2002 drought, focusing on aligning the right product with customer needs through a detailed six-step process including listing, inspection, grading, testing, and delivery coordination.

Dave Clothier, National Sales Manager:

• Lucerne prices are coming down slightly to stimulate the market as we head into the colder months.
• Sheds continue to empty in preparation for the new season, resulting in minimal carryover, which is great for filling with high-quality new season hay.
• Western Victoria and South Australia have been dry, affecting yields and leading to a big feed gap; recent rains are helping, but spring weather will be critical to watch.
• Hay is moving from northern and eastern Victoria into these drier areas, with some growers re-sowing due to delayed rain.
• In Southern Queensland, hay is already on the ground, with conversations happening on early harvests around mid to end of August in northern NSW; longer curing periods will potentially have an impact on quality.
• Stable hay pricing is anticipated, similar to last year, but dependent on factors including above-average rainfall and the potential for frosted crops affecting volumes.
• With a bumper grain harvest forecasted, we might see a softening in hay prices, impacting both the hay and export markets.