The Australian hay market is painting a tale of two seasons in 2025. While Victoria and South Australia battle through one of the most severe droughts on record, with hay prices soaring to $400 a tonne for cereal hay and up to $500 per tonne for lucerne, parts of northern Australia are sitting on decent supplies. This extreme contrast across regions is forcing farmers to completely rethink their approach to hay storage and market opportunities. For many southern producers, the numbers tell a sobering story. Farmers are reporting weekly feed bills exceeding $25,000–$30,000, while some regions are experiencing their driest conditions on record. But for those with proper storage and strategic thinking, this volatile hay market presents opportunities alongside the challenges. The current hay market reality The 2025 hay market has turned traditional supply patterns upside down. The tough conditions have led to a rare reversal of the usual supply flow, with good-quality hay moving from north to south. Queensland suppliers, who historically rarely shipped hay south, are now the lifeline for drought-stricken properties across Victoria and South Australia. The drought's impact extends well past just feed availability. Since February 2024, southern Australia has been experiencing severe drought, with parts of Victoria receiving some of the lowest rainfall on record. This has created an almost unprecedented demand for quality hay, with some regions completely exhausted of local supplies. Meanwhile, northern regions that experienced good seasons are finding themselves in a strong position. According to Tim Ford, managing director of Feed Central, "A level of complacency about hay supply has come into the market in Queensland, but buyers need to be careful because the hay is going to slip south really quickly". Why a structural hay shed changes everything When hay prices can jump from $300 to $500 per tonne in a season, storage becomes about more than just keeping bales dry. Farmers with hay sheds can stock up when prices drop and ride out the expensive periods. Without covered storage, you're buying hay at whatever price the market demands. Weather damage also hits harder when you're paying premium prices. A few damaged bales might not matter much when hay was $200 per tonne, but at current prices, even small losses add up quickly. Good ventilation and protection from moisture keep your investment safe. Plus, when everyone else is scrambling for hay and transport gets backed up, having your own supply on hand means you can focus on your livestock instead of chasing deliveries. Ready to calculate exactly how much hay storage you need for your operation? Our Hay Shed Calculator takes the guesswork out of planning your storage capacity. How Durakit sheds give farmers an edge in volatile hay markets Many farmers across Australia are now investing in Durakit sheds to gain an edge in unpredictable seasons like 2025. Known for their durability and ease of setup, Durakit’s structural hay sheds are becoming the go-to solution for hay storage — especially in regions prone to drought or extreme rainfall. Whether you’re bulk-storing lucerne for long-haul transport or safeguarding your own crop for future sale, Durakit sheds help you maximise both hay quality and market timing. Farmers using Durakit often note that the structure pays for itself quickly when hay prices soar — simply because they’re able to hold and protect their supply until conditions align. The best part? Durakit Sheds are in stock and ready to go. During unpredictable seasons, deciding to cut for hay can happen quickly. And when it does, you often have just weeks to secure storage. With 2–4 week delivery, Durakit offers a fast, reliable solution that’s perfect for hay season. Hay shed options that work The right shed depends on your local weather and how you plan to use it: Roof-only sheds work well if you don't get much side rain and want easy access for loading. The open sides let air move through naturally, which helps prevent moisture in stored hay, which can become combustible Enclosed sheds are worth considering if you're in an area that gets hammered by weather or you plan to store hay for months. Three-sided sheds give you protection from your prevailing weather direction while still allowing airflow. They're handy if you want to keep different types of hay separate. The choice often comes down to your local climate, the length of storage period, and how actively you plan to trade in hay markets. Smart storage practices for market advantage Proper hay storage goes beyond just keeping it dry. Strategic storage can actually improve your market position: Segregation by quality Store different grades separately so you can offer exactly what buyers need. Premium lucerne for dairy operations commands different prices from general cattle feed. First in, first out management Arrange your storage so older hay gets used first, maintaining quality across your entire inventory. Monitoring and testing Regular checks for temperature, moisture, and signs of deterioration ensure you maintain marketable quality. Hot spots in stored hay can quickly spread and destroy entire batches. Documentation Keep records of hay source, date received, and test results. Buyers increasingly want traceability, especially for premium markets. Positioning for Future Opportunities The extreme market conditions of 2025 show why hay storage matters. Farmers with proper sheds can source hay from distant markets when local supplies dry up, or store their own harvest at peak quality instead of rushing to sell into flooded markets. The farmers doing well through this crisis aren't necessarily those with the biggest properties or deepest pockets. They're the ones with infrastructure that gives them flexibility. When Queensland hay needs to move south quickly, they have somewhere to put it. When their own paddocks produce a bumper crop, they can cure and store it properly rather than selling cheap into a saturated market. Climate patterns suggest these swings between drought and surplus may become more common. Southern Australia has become drier over the past few decades, with the most pronounced changes during the cooler months between April and October. This makes reliable hay storage a crucial business asset rather than just a convenience. Design your perfect hay storage solution with our Shed Builder Tool and take control of your hay management strategy for whatever the market brings next.
Hay market 2025: how to ride out a shortage or be ready for a surplus
The Australian hay market is painting a tale of two seasons in 2025. While Victoria and South ...
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