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Applications for RIRDC funding for 2008-09 are now CLOSEDKey long term strategies
Fodder production includes hay of all types, chaff, vetch and pelletised forage. There are currently around 20,000 fodder producers on 46,000 properties across Australia, although not all of these are specialist producers. Annual hay production ranges between 4,900,000 and 7,600,000 metric tonnes (mt) per annum with demand consistently outstripping supply. In 2006–07 production is likely to be around 4,000,000 mt. Around 2 million tonnes of silage is produced each year. Fodder production is concentrated in Victoria (45%) and NSW (18%). Western Australia and South Australia (each 11%) are the major exporting states. Production data is limited as there is no formal production levy and around 30–35% of the hay and silage produced is traded off-farm. Indications are that production has been significantly affected by the drought and while this has brought an upward trend in prices and extended the range of fodder types sold, it has impacted heavily on research and development funding which is currently provided as a voluntary contribution based on production volumes. GVP of production averages around $1.1 billion per year and has grown by 50% over the past 10 years. The domestic market accounts for around 85% of consumption with the largest users comprising the horse, dairy and beef feedlot industries. The industry peak body, the Australian Fodder Industry Association (AFIA) forecasts an increase in demand for fodder of between 25 and 30% to 2010. The industry is proactive in its support for research into improved technology to support productivity. Opportunities for product enhancement through analysis and standardisation of hay and silage products are very good. These are currently being addressed through RIRDC projects. The industry is heavily reliant on the export industry and has focused strongly on addressing market requirements, establishing new markets and developing a high quality product targeted at specific markets. From 2001–02 to 2005–06 Australia imported 308 tonnes of fodder valued at $538,000. 79 tonnes were imported in 2005–06. Imports have trended downward over the past five years, however the impact of drought has caused short term increase in volumes imported. In 2005–06 Australia exported 725,000 tonnes of fodder valued at $203 million. From 2001–02 to 2005–06 Australia exported 3.26 million tonnes of fodder valued at $876 million. The Asian export market now consumes around 750,000 tonnes of Australian fodder each year with the animal feeds industry in East Asia estimated to be valued at $US10 billion and growing. Japan is the greatest importer of hay and chaff from Australia with expanding markets in the Middle East, Korea and Taiwan. In 2005–06, Japan imported over 625,000 tonnes of Australian hay and chaff – comprising over 73% of the Australian fodder crops export market and valued at over $170 million to the Australian economy. 80% of non lucerne hay exports go to Japan as oaten hay. The Fodder R&D Program has had a confluence of critical issues to address that have had a strong negative impact on the program budget for 2006–07. Hay is being sold into the Japanese market at historically high US dollar prices and purchasers are buying greater volumes of wheat and oat hay. However, the small volumes available to exporters due to high domestic demand and unfavourable exchange rates are leading to a tough environment for hay and straw exporters in 2006–07 and for the research program which is dependant on high export volumes for income. In July 2006, fodder exporters agreed to replace the existing voluntary fodder research levy (50 cents per tonne contributed by growers and collected by exporters on hay and straw delivered for export) by levies paid by all exporters on shipments at the rates of 50 cents per tonne on hay exported, and 25 cents per tonne on straw exported. This proposal was to be implemented during the 2006–07 harvest and was expected to generate additional income for the Program. It is hoped that this will occur in 2007-08 as drought conditions have impacted on income received via the exporter levy. Key outputs of the program include further development of oat varieties for hay production through the National Oat Breeding Program, and the development of improved vetch varieties for hay and silage using new Vicia species with genetic versatility. A review of disease constraints to oaten hay production has led to the development of a priority list of the important diseases of oaten hay for the major production areas and an assessment of producer capacity to identify and manage these. This study has clearly demonstrated the need for further training for producers in identification of disease symptoms. Some Key Performance Indicators
Note: An asterisk (*) indicates that the Corporation is still to finalise amendments to the project. |
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