May 8, 2013

Australian feed prices rise by 40% as drought looms

Australia's livestock and dairy farmers are seeing fodder prices rise by up to 40% as the country prepares for drought conditions.

Parts of Victoria, South Australia and southern Queensland are seeing the biggest shortages with some regions having less than half feed they had last year.

Caitlin Schofield, from the Australian Fodder Industry Association, says many farmers are holding on to feed as they prepare for drought conditions.

"Cereal hay is a real concern", she said.

"This year, with peak demand from the export market as well as lower yielding crops last year, buyers are actually out there in the market seeking that lower grade, lower priced product. Last year, there was a little bit of carry-over, but this year very limited stock's available and it's the same with straw."