WHILE the domestic market continues its slumber, export markets for hay are showing signs of life.

Although current export markets provide few price premiums to domestic markets, some expanding markets in the Middle East and China are giving hay growers hope.

Due to some encouraging signs in emerging markets, export throughput from processing plants in Victoria is expected to grow in the next year.

Hay processors can expand their capacity by increasing the number of shifts operating existing machinery and their pressing operations.

The export hay sector plays an important role in the Victorian hay market by setting prices early in the season.

As cereal-hay producers can gauge the prices on the export market in early October, they are able to offer other hay at comparable prices to their domestic buyers.

Hay exporters have been processing hay in southern NSW and northern Victoria for about 23 years.

Although Victoria produces between 35 and 40 per cent of the national hay crop, Victorian hay markets are dominated by domestic consumption.

Japan is the largest hay market in the world and has taken between 85 and 90 per cent of all hay and straw from Australia over the past decade.

In the Japanese market, Australian oaten hay is the largest source of fodder from any country. But Japan's dairy cows number less than two million and the market for dairy products has plateaued.

Korea and Taiwan have steadily built up their imported tonnages of fodder from Australia but their market size is limited.

With about 12.5 million dairy cows and an expanding market, China has the potential to be one of the world's largest hay markets.

While the Chinese Government is encouraging its farmers to produce food and expand its milk production, animal feed is limiting.

A recent trade mission undertaken by the Australian Fodder Industry Association has learnt that oaten hay from Australia has a bright future.

  • Further details of these markets will be outlined at the National Fodder Conference in Adelaide on August 10 and 11. For details, visit www.afia.org.au