Farmers who produce and export hay shouldn’t forget about their
overseas customers just because there’s a shortage of hay at home, says
the head of an export forage group.
“The largest and longest term customer for hay is the export market and
that shouldn’t be thrown aside for one year,” said Blair Wright, head
of the Global Forage Alliance, an organization of hay producers,
processors and export hay customers.
Wright said processors knew there would be less hay this year, but
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began to worry when they saw long-time exporters rolling up their
fields in round bales to sell locally instead.
“The commercial guy has to think about who his steady customer is,”
said Wright, also the president of Transfeeders Inc., of Olds, Alta.,
an export hay company.
Wright says he understands if a farmer is baling hay for his own
cattle, but is worried hay producers are taking advantage of a hot but
temporary local hay market at the expense of overseas markets.
It has taken 15 years to build secure export markets for Canada’s
lucrative hay export business and Wright is worried customers could be
lost if too many producers cash in locally.
“We may find there’s a lot of hay producers out there that are caught
up in the hysteria,” said Wright, who suspects there’s hay being
hoarded until the price stops climbing.
Isabel McPherson, executive director of the Canadian Hay Association,
agrees with Wright.
“I don’t think we can jeopardize those markets for a bad year this
year,” said McPherson.
She said the hay association has been criticized for continuing to send
hay to Japan and England when local cattle and hay producers are
searching for feed.
“It’s not a fair criticism,” she said.
Cattle producers operate a business and so do hay export companies.
It’s a business decision to keep exporting hay to maintain the markets
that have taken years to build, she said.
Wright said there’s enough hay to supply the export market and the
local market if the hay is shared.
“I think we can feed ourselves and them if we both take a little less,”
said Wright, who expects the compressed hay market to be down one-third
from its traditional 300,000 tonnes in sales.
He predicts most of the southern Prairies and northern States will have
a bumper second cut of hay, there’s still hay in the Peace River region
and recent rains have given pastures and crops a boost.
Dennis Laughton of the Foothills Forage Association said the drought
has forced everyone to make tough decisions.
“In a way it’s a shame the export market is going to suffer, but when
push comes to shove and people growing hay see their neighbour
suffering, and can get just as good a price as he would from export, I
expect they will want to look after their neighbour for the same price.”
