Input costs were lower in September, according to Dairy Australia’s Purchased Input Price Index, with hay and wheat prices continuing to weaken.

With Spring commencing, fodder prices eased with buyers holding of on purchasing in anticipation of new-season feed availability, while sellers have been trying to clear old season hay. Wheat prices have steadied with increased global output limiting export opportunities for increased local production.

Meanwhile, diammonium phosphate (DAP) was the only fertiliser to go up in price, up 3% to $1184/t, while urea dropped by 10% and muriate of potash (MOP) by 3%. Farmers in SW Victoria report grass is responding well to improving conditions with silage harvest underway. Having weathered extended dry conditions, falling feed input prices will improve confidence according to Bruce Knowles from Tyrendarra but energy prices remain a concern. In Gippsland hay and grain prices are still double the cost of applying urea to pastures, with transport costs “the killer”.