AS THE hay-making season winds up in Victoria, hay producers are facing rock-bottom prices that have plummeted by $90-100 a tonne during the past year.
Last week, pasture hay was being sold for as low as $110 a tonne for large squares and rolls ex-farm in the Colac region, down from $200 a tonne a year ago.
Large square and round bales of lucerne hay were selling for $250 a tonne last week in the Colac region, down from $300 a tonne a year ago.
In the north of the state, pasture hay dropped from $255 a tonne in January 2009 at Swan Hill and Kyabram, to $150 last week.
Lucerne hay at Swan Hill and Kyabram dropped from $320 to $220 a tonne during the 12 months.
A combination of late rain and surplus of cheap feed grain has put downward pressure on hay prices.
Feed grain prices were as low as $160 a tonne delivered to Melbourne or the Goulburn Valley last week.
Australian Fodder Industry Association executive officer Col Peace said it was a challenging finish to the season in Victoria with a blast of heat sucking the protein out of the hay, followed by heavy rain.
Late rain and good conditions led contractor Craig Pratt to make two cuts of a paddock at Tynong, the second last week.
