The Evolving Hay Market: a discussion with Pat Guerin (Bonus Episode)

Episode Highlights:

• Each export company in Australia has its own procurement matrix, lacking a single industry standard.
• R&D priority is shifting to focus more deliberately on the animal performance contribution value.
• There are ironies in the industry: breeding for some desired stem sizes can be counterproductive for animal performance, even when buyers are accustomed to a those sizes, for example.
• Due to these complexities, RD&EE (Research, Development, Education, and Extension) are crucial.
• While it may seem like there is competition for supply from different countries, the focus on animal productivity and growing the industry increases the overall market, benefiting everyone.
• In a growing market, everyone wins, whereas mature markets lead to competition over market share.
• Current investments in Australian export fodder focus on health and wellbeing for the future.
• Weather-damaged product is a major contributor to lower gross margins for hay growers in Australia. Investments in mitigating this issue can positively impact profitability.
• Conditioning the hay reduces the risk of rain damage by reducing drying time. Focusing on shortening the dry-down period can significantly improve contribution value.
• Using a tedder rake can hasten the drying process but increases the risk of losing colour. This problem has made people hesitant to adopt teddering.
• US tedders don’t spread the hay out; they fluff the windrows to promote airflow through them.