
Oaten Hay
Oaten hay is the mainstay of the export hay industry.
Hay Australia offers growers to nominate an area of hay with an expected yield, resulting in a maximum quantity. The Muchea plant has a fixed processing capacity, and growers who enter contracts to supply will guarantee the receival of their hay produced, providing it meets relevant quality standards.
Where the actual yield falls short of the expected yield the grower is not obligated to deliver the shortfall tonnes.
Where actual yield exceeds expected yield Hay Australia has the option to purchase the additional tonnage under the same terms and conditions as contained in the contract.
Payment Terms
Contracted growers will be paid a guaranteed minimum price (GMP) on delivery to the Muchea plant. Top-up payments are made respective to the quality attributes of WSC, ADF, NDF and visual quality as defined in the contract later in the production year.
Increases to this price can be made subject to currency movement and progression of the sales program.
Shed Storage
A storage payment will be made to growers who store hay in their own sheds through the season. Storage can be committed until the end of a nominated latest delivery month.
The payment will be calculated on the tonnes stored with $12 for hay shed stored until January plus $1 per tonne/per month after January.
Storage payment will be made concurrent with the hay payment, on the 15th of the month following delivery.
Other Terms and Conditions
Other terms and conditions will remain unchanged and will be as per the schedule and provisions of the standard Hay Australia hay purchase contract.
Uncontracted hay will be purchased on an as required basis.
Superdan Hay
There is an exciting and long-term opportunity to produce and market Superdan (a sorghum type) export quality hay to the Japanese markets. Trial shipments have been conducted and there is strong interest for Hay Australia to grow its production base.
The market for sudan grass in Japan is 300,000t annually.
Superdan is a summer active C4 grass, with expected yields of 14-18t/ha under irrigation. Only irrigated Superdan would be acceptable for export hay, with quality requirements for the hay being high.
These quality attributes would importantly include being fine stemmed and leafy, good visual appearance with no weather damage or moulds.
As with existing oaten hay and superdan hay producers, guaranteed minimum price (GMP) contracts for a given volume are able to be negotiated with Hay Australia.
Wheaten Straw
Header trailed wheaten straw can be used as a fodder substitute in TMRs (Total Mixed Rations) which are common in larger Japanese dairies and beef properties.
Supplied wheaten straw is required to be clean, bright, free of weeds or stones, and absent of mould or weather damage.
Straw may need to be kept on-farm for as long as eight months, so appropriate storage is recommended in order for the product to remain export quality.
Bedding straw
Long wheaten straw (>50cm in length) is highly sought after in the Japanese markets for horse bedding.
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