RIRDC
RIRDC, shaping the future

Program Overview

Background and Long-Term Strategy

Fodder is the wide range of crop and pasture species that are grown, harvested and lightly processed for both on-farm use and sales through domestic and export channels. Fodder production includes hay and silage of all types (pasture, cereal, lucerne, clover and others), chaff (coarsely chopped dried whole plants), vetch and pelletised feed. There are around 20,000 producers on 46,000 properties across Australia producing fodder. The majority of fodder growers are not specialist producers. The domestic market accounts for around 85 per cent of consumption with the largest user groups comprising the horse, dairy and beef feedlot industries. Fodder is also widely used in horticulture for mulches and for erosion control.

The volume of fodder traded in both the domestic and export market continues to increase. Improved conditions in 2007-08 saw increases in the production of broadacre crops and their associated prices. This was highlighted by the increase in the gross value of hay up by 74 per cent in 2007-08 to $2.8 billion (Source ABS). The Australian Fodder Industry Association (AFIA) estimates it at a lower $2.2 billion. AFIA also predicts that the production estimate of last year's 2008-09 crop was 5.3mt, over 1mt lower than the 2007-08 season.

Swinging production volume trends and volatility in weather during curing and storage from season to season, places an emphasis on R&D to address the risks and provide mitigation measures for farmers. The majority of fodder growers are not specialist producers. Around one third of all Australian commercial scale farms (38,000 properties) make hay each year. On average around 70 per cent of fodder used on Australian farms is produced on-farm. The balance (up to 30 per cent) is traded and this percentage has increased substantially since 1998-99.

The Australian Government's fodder summits in 2006-07 and numerous regional workshops have highlighted the importance of a quality, reliable fodder supply and illustrated the heavy reliance of linked industries such as the dairy and racing industries on fodder supplies. However, to date, there has been no further support for fodder research from these sectors. It also recognises fodder as an important risk mitigation factor for income and management practices to protect against an increasingly variable climate.

The industry has focused strongly on addressing market requirements, establishing new markets and developing a high quality product, with the majority of growers producing hay and silage targeted at particular markets.

For these reasons R&D is needed to provide sustainability and profitability in this uncertain landscape for the fodder industry.

The drought has impacted heavily on the hay export industry, lowering both the quality and quantity of hay available for export. This has reduced the sector's ability to meet contractual requirements and has also reduced the contributions flowing into research from the export sector. The Australian Government's fodder summits in 2006-07 and numerous regional workshops have highlighted the importance of a quality, reliable fodder supply and illustrated the heavy reliance of linked industries such as the dairy and racing industries on fodder supplies. However, to date, there has been no further support for fodder research from these sectors.

Key long-term strategies

  • Explore and develop new export and domestic markets for Australian grown fodder, shore up existing markets and supply markets with new Australian fodder products
  • Address the increasingly specialised nature of world fodder markets through the development and adoption of superior new varieties of the most important fodder crop species for export and domestic customers
  • Crop agronomy and fodder production efficiency through investments in plant nutrition, pest/diseases/weeds, micro-organisms, water use efficiency, faming systems, harvesting/processing technologies, fire management and agronomics to manage chemical residues in fodder
  • Ensure that the fodder supply chain is efficient in delivering the best quality product to end users through harvesting, storage, transport, coordination, traceability and building relationships with allied industries
  • Ensure that Australian produced fodder in domestic and export market meets customer expectations for quality
  • Address the climate change challenge facing the Australian fodder industry and its customers; effectively support the development o fodder industry products which meet international trading standards and comply with import country protocols; protect the Australian fodder industry from biosecurity hazards; produce fodder products with minimal negative impacts on the environment
  • Ensure an informed industry and early successful adoption of R&D program outcomes.