Hay produced for export markets is referred to as export hay. Before being exported, Australian hay must pass a variety of quality requirements. Export hay frequently receives treatments to increase density because it cannot be sold economically in the typical round and large square bales to foreign markets.
Some of the best hay-making conditions in Australia are found in Western Australia. Oaten hay is prized for its high energy level, fiber content, and flavor. For animals to perform well, good color, a sweet flavor, scent, and exquisite texture are essential. Hay is mechanically cut and prepared in WA before being swiftly dried in the field, stacked, and kept nearby. WA oaten hay is a preferred feed for dairy cows because of its great digestibility and sweetness. Its high water-soluble carbohydrate content of roughly 25% provides dairy cows with a rapid source of energy. The rumen microbes utilize this energy to generate a lot of milk and maintain live weight gain.
From 2008/09 to 2011/12, the average price of WA's hay export markets was about A$342 per tonne free on board (FOB). Lucerne hay sells at a premium and is sought after by the dairy business and racehorse industry, with premium oaten hay occasionally selling for slightly over A$400 FOB.
Oaten hay yields can reach up to 17 t/ha when irrigated, and 4-6 t/ha on average for lamb. Around Moora, York, Narrogin, and Wagin are where most of the production takes place. Hay is a good way to ease into primary production and can be used to 'clean up' the land. Compared to cereal grain crops, it is less vulnerable to frost damage and waterlogging in some regions. With yields of 4-6t/ha, oaten hay production expenses range from $250 to 350/ha. Despite the risk of potential weather damage during the spring harvest, oaten hay has been a very profitable company. Hay from Lucerne has a lower risk of weather damage and can be harvested more wisely in accordance with forecasts.
In 2021, the United States exported more hay than ever before, reaching 4 million metric tons for the third year in a row. 4.19 million tons, the previous record, were achieved in 2017. In 2021, total US hay exports exceeded 4 million MT for the fourth time in five years.
China purchased 1.56 million MT of U.S. alfalfa in 2021. Between January and August of 2021, total monthly exports to China ranged from 65,409 MT to 191,267 MT. Nearly 37% of all hay exports from the United States, regardless of kind, will go to China in 2021. As long as trade partners continue to get along and China's dairy industry keeps expanding, this is fantastic news for Western haymakers.
In 2021, Japan was the second-largest importer of American alfalfa hay, up 2% from the year before. Saudi Arabia was surpassed by South Korea to import the third-highest volume. Just two years ago, this flip-flop would have been unthinkable. Due to the fact that Saudi Arabia sources its alfalfa from other markets rather than importing it directly from the United States, the Kingdom has been a significant importer of American alfalfa. Saudi Arabia and the United Arab Emirates (UAE) both imported 97,790 MT of alfalfa into the United States in 2021, an increase of 4.6% from the previous year.
In 2021 compared to 2020, the amount of non-alfalfa hay exported from the US grew by 4.5% to 1.4 million MT. With 835,626 MT, Japan is the top exporter of non-alfalfa, with a volume growth of 4.2% for the third year in a row. In 2016, South Korea was the world's largest importer of non-alfalfa hay, with purchases from the United States declining by 5.4% from the previous year. The top five export trading partners for hay other than alfalfa were Taiwan and China.
Numerous volumetric records were broken for hay exports from American ports in 2021. For the fourth time in five years, the total amount of hay exported in 2021 topped 4 million MT. This was mostly caused by yet another significant increase in China's imports of alfalfa hay. More so than domestic production, exports have an impact on markets and pricing.
Hay must be packaged in substantial square bales to facilitate trucking and obtain the maximum weight permitted. Depending on the diameter of the load and the accessibility of backhauls, shipping prices can vary. The majority of the market wants hay that is either pure or high in alfalfa content.
Producers of hay must decide on their method of hay packaging before baling. To ascertain their requirements and preferences, the driver and the end user must be consulted. Giant squares, small squares, large circular hardcore, and narrow widths are all available packaging possibilities. Due to their reduced weight and increased fuel efficiency, Large Squares are the recommended package for vehicles. Compared to circular bales, a rectangular load with straight sides and a top has less wind resistance. The load's width is no wider than eight feet. This permits nighttime travel inside all spheres of influence.
Unless the producer has the necessary equipment for handling them, loading and unloading a little bale requires a significant amount of physical labor. Depending on the manufacturer and model number of the baler, large round hard-core bales can be between 57 and 66 inches broad. The maximum diameter of a bale is 45 to 75 inches. Reduced density in comparison to huge square bales and over-width loading are two drawbacks of large round bales. Because they may be transported without requiring an over-width permit and have a lower density, narrow-width bales also weigh less per bale.
Hay is subject to specific formalities involving governemt customs agencies in the USA when it is imported into the United States. Customs and Border Protection (CBP) A formal 'entry of merchandise' paperwork must be used to 'enter' or declare the goods to CBP. A federally qualified customs broker is necessary for loads costing more than $2,000 in value. For the 'importer of record,' a broker will set up a Customs Bond ($400 - 500) and levy a brokerage fee for each shipment (about $25/load). Contacting a third party who is already exporting hay to the US is an additional choice. The producer sells the hay to the third party in a typical arrangement.
Ashly Chole - Senior Finance & Technology Editor