This video from the Mon Système Fourrager channel discusses the issue of pricing hay sold to horse and cattle producers. It presents several key points to take into account in order to determine a fair and profitable price for the seller, while being attractive for the buyer.
Key points in determining the price of hay:
Cost of production: This is the first thing to consider. It includes expenses related to the establishment of the meadow, harvesting, storage and transport. It is important to properly account for all costs to ensure a selling price that covers expenses and allows for a profit margin.
Hay quality: The quality of hay is a determining factor in its price. It is measured according to dry matter, nutritional value and the absence of damage. High quality hay with a high dry matter and protein content will have a higher value than lower quality hay.
Comparison with other crops: It is important to compare the price of hay to that of other crops potentially produced on the same land. This ensures that hay production is economically viable and offers an attractive return on investment.
Supply and demand: The price of hay can also be influenced by the laws of supply and demand. If there is a surplus of hay on the market, prices may fall, while high demand may cause prices to rise.
Humidity: The price of hay is generally fixed on a dry matter basis. It is therefore important to take into account the humidity of the hay when negotiating the price. Moister hay will have lower value because it contains less dry matter.
Nutrient replacement cost: For buyers, it is important to consider the cost of replacing lost nutrients if the hay purchased is of poor quality. Poor quality hay may require the purchase of additional concentrates to meet the nutritional needs of animals, increasing the overall cost of the feed.
Hay pricing tools:
The video shows two useful tools for pricing hay:
Excel file developed by the University of Guelph: This file allows you to calculate the cost of producing hay based on various parameters, such as yields, input costs, and dry matter losses. It also makes it possible to determine a minimum and maximum selling price based on the nutritional value of the hay.
“FeedVal” mobile application: This application allows you to compare the nutritional value of different forages according to their protein, energy, fiber and other nutrients composition. It can be useful for buyers to compare the value for money of different types of hay.
Conclusion:
Determining the price of hay is a complex process that requires taking into account several factors, such as the cost of production, the quality of the hay, supply and demand, humidity, and nutritional value. The tools shown in the video can help sellers and buyers set a fair and equitable price for both parties.