By Ron Friesen
A severe drought in the American Midwest has created an opportunity for Manitoba forage producers to increase hay exports to the stricken region.
Forage production is down by 50 per cent in some states and brokers from as far south as Texas are visiting Manitoba looking to buy hay for livestock, officials say.
Hay shortages in the U.S. could provide a boost for Manitoba's growing forage export industry.
"We understand there's a lot more hay moving south this year," says Wayne Digby, executive director of the Canadian Forage and Grassland Association in Brandon, Man.
"There's good demand for forages and the prices are really up."
Prices for hay have increased between 25 and 50 per cent this spring, depending on the quality, according to reports.
The question is whether Manitoba producers can meet the demand. The province's overall forage crop so far this year appears slightly below average because of a hot, dry summer.
"There isn't a surplus in Manitoba, but someone who does have a surplus may be able to sell it south," says Glen Friesen, forage specialist with Manitoba Agriculture, Food and Rural Initiatives.
Producers are taking a wait-and-see attitude until late September, when the final cut of hay is usually harvested, Friesen says.
"Most producers are taking names and numbers, thinking about what their options are, and waiting for the last harvest of the year to get a total production number," he says. "If they feel they can afford to ship some, they will."
High-quality baled alfalfa for dairy cows makes up the bulk of Manitoba hay exports to the U.S. Brokers are seeking to buy lower quality beef hay as well, Friesen says.
"They're looking for anything they can get their hands on."
Some wonder if drought-stressed U.S. livestock producers, already suffering from below-average corn and soybean crops, have limited ability to pay high prices for imported hay.
"Hay prices that were offered in spring were barely sustainable for those producers," says Chris Kletke of Brunkild, Man., who sells all his alfalfa hay into the U.S. "Now, with these prices in the fall, their ability to pay hasn't gone up any."
Some warn increased hay exports could result in local feed shortages for producers around Lake Manitoba, whose pastures were destroyed by overland flooding last year.
In a recent letter to the provincial government, Manitoba Beef Producers requested a forage assistance program to help flooded producers.
"There will be limited forage left available for flood victims to purchase if the province of Manitoba delays an announcement of assistance," MBP says.
source: FCC