The dynamics of the South African lucerne hay industry

Lucerne hay is undoubtedly one of the most important forage crops used in animal nutrition globally. This article sheds light on the intricacies of the South African lucerne hay sector by offering an industry overview. Lucerne hay quality is categorised into different grades: Supreme, Prime, Grade 1, Grade 2, and Grade 3, each exhibiting its distinct characteristics and attributes based on the nutritional value of dairy cattle. The producer price of lucerne hay is driven by supply and demand in the market. These fluctuations reflect the attractiveness of new producers entering or producers exiting the industry, indicating the sensitivity of market dynamics to external factors like weather and international demand. On average, South Africa exports 160 to 240 thousand tons annually, mainly to neighbouring countries and the Middle East. Over the last several years, the Chinese markets imported a growing volume of South African-produced lucerne hay. Weather conditions are one of the leading drivers of changes in the availability, quantity, and quality of lucerne hay in South Africa, impacting the producer price of lucerne hay in the local market. This article aims to provide insight into the dynamics of the South African lucerne hay industry. Additional research is required to understand the interactions of weather conditions (temperature variations, rainfall and occurrence of rainfall) on lucerne hay production and quality. Understanding international demand for South African lucerne hay will provide insight into the competitiveness of South African lucerne hay in the international market.