The year in review and preparing for 2025: a Market Wrapup with Dave Clothier

Podcast HighlightsIn the final Feed Central Hay Matters Podcast for 2024, Jon Paul Driver catches up with National Sales Manager Dave Clothier to discuss the challenges and market shifts faced by hay producers during the 2024 season and what we can expect in the year ahead.Early in the year, drought cleared stockpiles of low-grade hay, but wet weather later reduced overall production and caused quality deterioration. Strong demand continues, driven by record feedlot numbers and booming beef exports, while the sheep flock declines and the dairy sector remains cautious. Looking ahead, hay prices are expected to rise, with limited availability of high-quality supply for key demand periods. Forward planning is essential as 2025 brings new opportunities and challenges.The Year that's Been:Early drought in southern Australia cleared stockpiles of low-grade hay from previous seasons.Variable spring and summer conditions has either reduced hay yields or impacted quality, while frost events produced some high-quality hay in far smaller volumes than expected.Current stockpiles are mostly mid-grade hay, with limited availability of premium fodder needed for the March–April weaning period.Feedlot numbers are at record highs of 1.4 million cattle, with strong confidence feedlots will remain full throughout 2025.Australian beef exports reached a record-breaking 1.3 million tonnes, driven by strong demand from Japan, Indonesia, and the US.Looking Ahead:National sheep flock is declining due to drought, live export policy changes in Western Australia, and challenging weather conditions across southern production regions.The dairy sector faces reduced milk production, fluctuating weather, and budget pressures, leading to more cautious fodder purchasing decisions.Hay prices are predicted to rise by at least 10% in early 2025 due to limited supply, grower cash flow priorities, and strong demand.Forward contracting is recommended to secure quality hay and manage costs before peak demand periods.