Stock Feed Demand in Victoria Reaches Crisis Point Amid Drought

Strategic Insights -

The demand for stock feed in Victoria has reached almost crisis point, with a shipment of 20,000 tonnes of lupins from Western Australia en route to Geelong. The shipment, organized by CL Commodities, is the largest of its kind to reach Victoria in recent years, and a significant portion of the consignment has already been sold. The drought in Victoria has increased overall demand for stock feed, and the majority of the supply will be used in the domestic market. The shortage of hay has also made high-quality, high-protein feed grain a viable option, with prices for hay delivered into Victoria reaching nearly $600 a tonne.

Key Takeaways:

  • The shipment of 20,000 tonnes of lupins from Western Australia is the largest of its kind to reach Victoria in recent years.
  • A significant portion of the consignment has already been sold, highlighting the strong demand for stock feed in Victoria.
  • The drought in Victoria has increased overall demand for stock feed, with the majority of the supply to be used in the domestic market.
  • High-quality, high-protein feed grain is a viable option for farmers, particularly with the shortage of hay.
  • Prices for hay delivered into Victoria have reached nearly $600 a tonne, with farmers struggling to keep nutrition up for livestock.
  • CL Commodities director Bob Lean confirmed that the shipment was a one-off and had been organized to fill demand in the market.
  • The Australian Fodder Industry Association chairman Louis Kelly highlighted the major hurdles in securing hay in Victoria, with high-quality, high-protein feed grain a viable option.
  • Victorian Farmers Federation livestock president Scott Young stated that there was huge demand for all stock feed at the moment, with requirements for high-protein, high-energy feed grain highlighted as farmers come into lambing season.
  • Mr. Young emphasized that hay prices and availability continue to be a challenge, with prices upwards of $500 to $600 a tonne.

Statistics:

  • 20,000 tonnes of lupins are being shipped from Western Australia to Geelong.
  • The demand for stock feed in Victoria has reached almost crisis point, with prices for hay delivered into Victoria reaching nearly $600 a tonne.
  • Lentils are currently trading at $680 a tonne in Melbourne, field peas at $745 a tonne, and faba beans at $670.
  • The supply of lupins will be used in the domestic market, with all of the supply set to be used locally.

Sources:

  • Bob Lean, CL Commodities director
  • Louis Kelly, Australian Fodder Industry Association chairman
  • Scott Young, Victorian Farmers Federation livestock president