Dairy Australia’s 2019 Dairy Situation and Outlook report, released last week, said grain prices in Tasmania fell 21 per cent to $150 a tonne for the year to April and hay prices in Western Australia decreased 4 per cent to $278 a tonne.
They were the only positives in an otherwise dismal year of feed input costs across Australia.
In all other dairying regions in Australia, both grain and hay prices rose during the past year as a result of prolonged dry weather.
Curiously, grain prices jumped 94 per cent to $340 a tonne in Western Australia, despite the state producing a record grain crop.
In Tasmania, hay prices rose 25 per cent to $443 a tonne — the highest level in Australia.
According to the report, the biggest jump in grain prices was in the Goulburn/Murray Valley region of Victoria, where the rise was 255 per cent.
But at $390 a tonne, it was not the highest priced dairy region in Australia.
That mantle went to the Darling Downs in Queensland, where dairy farmers paid $563 a tonne.
Dairy Australia’s report said the dry start to autumn this year caused a spike in hay prices across most dairy regions.
“At the time of the February Dairy Situation and Outlook report, prices had begun to drop and appeared to have reached a floor by end of month,” the report said.
“As autumn commenced with a dry outlook, market sentiment drove prices back to near the peak of last year.
“The lack of carry-over stock and sudden increase in demand raised concerns for the upcoming season, forcing farmers to purchase fodder.”
Dairy Australia said hay demand had eased slightly in recent weeks as a result of recent rain across southeastern Australia but that demand could firm with drier weather forecast.
The report said international pressure was likely to have the greatest influence on grain prices for the new season.
