Hay Market Snapshot

Hay Market Snapshot

Shortages of high quality alfalfa persist in the Northwest as we head into the 2014 growing season. Northwest FCS Vice President of Market Research and Development Michael Stolp gives an update on the region’s hay industry.

Stolp: “The Northwest hay market is heating up. Widespread drought in the Western U.S. is expected to reduce hay yields and forage production this season, particularly in California and Nevada. This is likely to result in increased demand and higher prices for Northwest hay. The improved financial position of Northwest and California dairies is likely to result in more competition for high-quality hay than in the recent past. California-based exporters will have a strong interest in securing sufficient hay to protect market share (and investments in infrastructure) built over the last several years.”

Also mentioned in the quarterly snapshot in the Washington-Oregon Columbia Basin, old crop hay stocks are reportedly cleaning up. Dairy buyers are showing interest in securing new crop contracts, but are less interested in old crop purchases given the lack of quality hay available in the market.

In Idaho, California buyers are in the market and are driving sales of old crop hay, while Idaho dairies are showing strong interest in new crop contracts.

 

In Oregon’s Klamath Basin, interest in old crop hay stocks has been steady from California buyers, and some contracts for new crop have been made.

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