Winter is only a week away, and it still hasn’t rained properly in some of the highest stocking rate areas of the country. By most accounts hay or straw of any description is very hard to come by, and price have jumped.
Dairy, beef, and sheep farmers in drought-stricken parts of Victoria, NSW, and South Australia have been feeding out for most of 2025. While grain is still easy enough to come by, and prices are still at reasonable levels thanks to weak international markets, ruminants can’t get by on grain alone.
With little to no dry feed left in paddocks, roughage has become highly sought after, and it is now travelling a long way to feed hungry stock.
At the start of May, rainfall forecasts for the coming month were dire, and this started a run on hay up and down the east coast. Not to mention floods in other parts of the country, where supplementary feed will be required to keep stock fed for a while yet.
Figure 1 shows the price of pasture hay delivered to South West Victoria, South West WA, and Central West NSW. The price data is collected by Dairy Australia and published on their website.
After starting the season at $260/t in December, South West Victorian hay prices began climbing steadily in February, reaching $315 in early May and jumping to $380/t last week. Hay prices have gained 46% since harvest for anyone canny enough to have held onto it.
Pasture hay prices in NSW have followed Victoria higher, but didn’t make the same leap last week, while in WA, hay prices have been rising steadily since harvest 2022.
When hay is in short supply, livestock producers will turn to straw. Figure 2 shows that straw prices are also on the move (the prices are an average of cereal straw) in Victoria and NSW. The jump has been rapid and equates to a 68% increase since harvest.
What does it mean?
Both Figures 1 and 2 show how strong hay and straw prices can get in dry times, with 2019 NSW prices for hay reaching $450/t and straw $350. With feed and agistment available in the north, it might not come to that this time, but dairy producers will be weighing up what they are willing to pay to keep cows milking.
Key Points
- Hay prices have moved sharply higher in the last month as supplies dwindle.
- Significant gains have been made in hay and straw prices since harvest.
- Previous price highs seen in 2019 are still some way off.
Click on figure to expand
Click on figure to expand
Data sources: Mecardo, Dairy Australia, MLA
