Managing fodder prices for droughts – a sheep producer’s guide

AWI

Type: Producers Guide
Knowledge level: Intermediate

Farm Table says:

This report focuses on strategies which will assist sheep producers in  managing fodder price and supply risks during droughts

This guide has been produced by AWI and  even though there is considerable information available to sheep producers on practical aspects of drought management, this document provides a more in depth look at:

  • the amount and type of feed required during a drought
  • forward planning
  • decision making on how much fodder will be stored in advance on-farm
  • fodder buying strategies

The key sections of the report include:

  • On-farm fodder requirements
  • Approach to drought fodder supply
  • Options for managing fodder supply and price risks
  • Locking into prices – forward contracts and futures
  • Decision points for producers
  • Cost of storing fodder
  • Opportunity costs
  • Storage infrastructure costs
  • Additional storage costs
  • Fodder type

In conclusion, a simple financial provision for drought by a sheep producer may not be sufficient if sheep producers are unable to access fodder when required. In addition,  shortages in domestic supply are likely to further exacerbate price rises during droughts.

2013 - Australia - AWI
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