Hay has proven its credentials as a solid crop option for South Australian farmers for the upcoming season and beyond, says Balaklava-based hay exporter Balco.

 

With farmers across the State now assessing their cropping strategies for 2009, Balco’s Managing Director Malcolm May expects more will decide to include hay in their crop rotations based on the strong performance of the latest harvest.

 

While other grain yields suffered from the lack of spring rain in 2008, farmers that cut hay were rewarded with average yields, good quality and strong gross margins.

 

The average hay harvest in South Australia was reflected in Balco’s total export tonnage which rose to 150,000 tonnes of hay in 2008, up from 130,000 the previous year.

 

Most of that hay is now being shipped to dairy farms in Japan, Taiwan, South Korea and China.

 

“Many farmers are right in the midst of planning their crops for 2009 and the track record of hay has it high on the rotation agenda,” Mr May said.

 

“Those that cut early for hay in September and October last year were rewarded, while many farmers who held out longer for grain were let down by the absent spring rains.

 

“Hay has proven time and time again to be a reliable performer bringing in a stable income for farmers when adverse conditions are making it extremely tough on the land.

 

“The yields and quality of hay produced at a time when a lack of rain played havoc with other crops shows just how important it is to include hay as part of a crop rotation.

 

“The strong demand for good quality Australian hay throughout Asia and the lower Australian dollar have also helped to deliver a solid return for farmers.”

 

Balco has a reputation as a reliable international supplier of high quality oaten, cereal hay and straw particularly in the Asian region.

 

With a large grower base across South Australia and Western Australia, Balco sells approximately one fifth of the hay exported Australia-wide.

 

South Australian hay is delivered to Balco’s processing facility at Bowmans where it is packed ready for export while West Australian hay is delivered to Balco’s facility at Brookton.

 

Japan is Balco’s largest market, representing more than 90 per cent of its exports, with the Group also exporting to South Korea, Taiwan and China.