In South Australia, the Australian Fodder Industry Association is warning feed prices are likely to climb as dry weather is shortening supplies. Cereal hay prices are currently $340/t—$375/t, up from $260/t—$325/t at the same time last year.

South Australian Dairyfarmers Association (SADA) believes hay supplies are sufficient to cover demand,  but warned on quality as some crops are damaged by frost. SADA president Robert Brokenshire said freight could add between $20/t—$40/t.

The ongoing drought raises concerns for dairy farmers as crop yields are impacted by limited rainfalls. This year, the growing season lasted 12 weeks with many cutting crops early. Prices are expected to rise further over summer as supply tightens and costs increase into late autumn.