Australian Hay Prices Return to Normal, Northern Feed Grain Costs Remain High
Hay prices in Australia have returned to normal levels after a peak two years ago due to low production and drought. The market was extremely high at that time, but since then, there has been a significant increase in hay production, particularly in the south-eastern regions.
In the south, hay markets are experiencing lower prices as balers start rolling. The price midpoint for pasture hay in south-west Victoria is now around $205 per tonne, which is at its lowest point since spring 2022. Bumper hay crops in the Wimmera region may be contributing to this decrease.
In contrast, NSW hay prices are stronger due to a dry autumn that has impacted supplies, keeping prices at a $40 premium compared to those in the south.
Feed grain prices remain a separate market issue. In the south, feed wheat and barley prices are stable, but in the north, they remain high due to a tighter 2025-26 harvest and high freight costs. This may change as harvest comes around and exportable surpluses become available.