Dry conditions and high feed prices will continue to affect Western Victorian farmers for at least 12-18 months, Dairy Australia (DA) chair Jeff Odgers says.
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DA’s latest Hay and Grain Report said hay prices in western Victoria had doubled since January, hitting $325 a tonne, excluding GST.
Grain prices have also increased over 50 per cent since January in western Victoria, to more than $400 a tonne, DA said.
Currently, more than 40 per cent of Australia’s dairy farms are in drought affected regions, with more than 2000 dairy farms affected across NSW, Queensland, and the Murray and east Gippsland in Victoria.
The Bureau of Meteorology’s outlook forecasts no respite from the dry conditions for those areas from October to December.
While the south-west has not been hit by dry conditions and is not expected to experience significantly low rainfall in the period to December, it has been affected by the strong demand for hay from the drought-affected areas.
“Typically, farmers will grow the bulk of their annual feed supply in spring, but for many dairy farmers, notably those along Australia’s east coast, it will be tough to achieve the growth required and farmers will need to consider feed purchases to address the gap,” Mr Odgers said.
“Our major concern is that we have seen rising feed costs heavily impacting farmers’ cash flow and access to feed, particularly fibre, is becoming much harder.”
“Through the national availability of Taking Stock one-on-one consultations, technical information, discussion groups and localised extension and support from WestVic Dairy, we want to ensure farmers understand their local situation, are prepared to be proactive with their planning and act quickly,” Mr Odgers said.
WestVic Dairy is delivering on the ground localised support through a range of activities, with a focus on planning through the coming months to make the most of available feed.
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