Oats have become scarce in the Goulburn Valley, resulting in increased prices.
Murchison grower Rob Brown said all feed grain prices were now increasing due to minimal pasture growth since the end of summer.
“We got those rains at Easter time and then the taps turned off,” Mr Brown said.
“Everyone on the livestock side of things has gone through a lot more grain than they thought they would.
“We also had our first frost here yesterday (Tuesday, May 21) so the pastures didn’t really get away this autumn.”
Avenel farmer Ash Robinson grows a mixture of grain with his brother and father and said his father was finding oats ‘harder and harder’ to source.
“Therefore, the prices have gone through the roof,” Mr Robinson said.
“Typically with oats, the inputs are less so they don’t cost much, therefore don’t sell as high.
“But some years back we saw prices of about $600 per tonne when the year before that it was $150.
“Australian oats are sold primarily on the domestic market, so prices are not as volatile as export grains.
“So, people now go for the big-ticket items.”
The Robinson family grows several later maturing varieties to stagger its harvesting time at the end of the season and produce its own oat hay and chaff for the horse industry.
Murchison oat seed grower Doug Brown said the high prices were not just the result of low rainfall.
“It started well before autumn,” Mr Brown said.
“The price of oats was already quite high because there was not a lot grown last year.
“And that’s because basically for wheat and canola, the prices have been very good, so oats are not grown as much.
“It’s cheaper to buy wheat for feed.”
Mr Brown specifically grows Bundalong variety which he sells as clean seed for other farmers and said there was more than just it having no breeding royalties.
“It predates plant variety rights, so there is no cost on that front,” he said.
“But it also suits the area around here; it’s popular.”
Mr Brown was confident more farmers would be growing oats this season.
Unigrain commercial general manager Michael Vaccari said pricing oats at the moment in Victoria was difficult because of the scarcity.
“There is certainly a demand in Victoria right now, absolutely,” Mr Vaccari said.
“Availability is the issue; there’s nothing trading, so there is no real market number.
“Some farmers are normally paying perhaps about $500 per tonne, delivered, maybe $550.
“The key issue is more supply than price.”
Mr Vaccari said prices out of Western Australia – the largest oat-growing state – could be used as an indicator.
On Thursday, May 23, Western Australian oats were selling for $530 to $590 per tonne.
22°C