August 10, 2009
Australian feed industry fuels economy
The fodder industry has supplied a multi-billion dollar contribution to the Australian economy, according to research recently released by the Rural Industries Research and Development Corporation (RIRDC).
The gross value of hay production averaged A$1.4 billion (US$1.17 billion) in the three years to 2006-07, exceeding the gross value of sugar cane production (A$1.1 billion), wine grapes (A$1.1 billion) and cotton A($0.9 billion).
The value of the Australian livestock industries- to which fodder is a substantial input- valued A$15.3 billion in the three years ended 2006-07.
The figures are included the new report The Australian Fodder Industry- An Overview of Production, Use and Trade, released at the Australian Fodder Industry Association (AFIA) conference in Fremantle.
The report shows that use of purchased fodder has increased over the past two decades, most notably in the dairy and feedlot sectors.
Australian hay and straw have also become important export commodities.
The tonnage of hay exported has more than doubled in the past 10 years and exports were valued at A$242 million in 2006-07.
Drought has boosted demand and together with increasing competition for land and water resources, has changed the quantity and type of fodder produced as well as the geographic distribution of fodder production.
RIRDC managing director Dr Peter O''Brien said the report would be used by a wide range of farmers, farm groups and policy makers.
Many farmers rely heavily on fodder stocks and the capacity to buy in additional fodder to manage drought and it''s important to ensure farmers to have access to adequate and updated information on fodder production and use as well as understand changes in their exposure to fodder supply and price risks, he said.
O'' Brien added the Australian fodder industry has received support for research and development from RIRDC since the early 1990s.
The report, commissioned by RIRDC and AFIA, is designed to update and expand statistics available on the Australian fodder industry, outline the key trends in fodder production, utilisation and trade and contribute to a greater understanding of the industry''s structure and dynamics.