Industry Analysis & Industry Trends
The Hay and Other Crop Growing industry has battled difficult trading conditions over the five years through 2012-13, during which revenue is forecast to decline at an annualised 21.4% to total $1.29 billion. Industry performance generally tracks that of hay production in Australian, which is the largest product segment. Over the five-year period, the effects of extreme weather patterns devastated hay producers. Demand and prices for hay soaring at the height of the millennium drought (during 2007-08) only to plummet just three years later as drought conditions eased in 2010-11.
Severe drought conditions reduced pasture quality for livestock industries making them reliant on alternative feedstock such as hay... purchase to read more
Industry Report - Industry Analysis Chapter
The Hay and Other Crop Growing industry has endured five years of weather-induced volatility, which caused revenue to decline at an annualised 21.4% to reach an expected $1.29 billion in 2012-13. During this period, industry revenue shot up in 2007-08 as severe drought conditions and feed scarcity sent hay prices soaring. However, the easing of drought conditions in 2010-11 caused industry revenue to plummet in response to lower hay prices as supply increased and pasture conditions improved for farmers. These trends are expected to continue over 2012-13 with the industry growth expected to remain stagnant at 0.0% due to elevated hay supplies and subdued demand from farmers. Profitability has also fallen over the past five years due to the overall decline in hay prices since 2007-08... purchase to read more