Hay Market Research: Argentina, Part 1
While we were unable to find exact statistics related to the overall production of hay in Argentina, we did find several sources with information on Alfalfa hay production (the primary forage in Argentina). Our findings have been presented in this spreadsheet. Detailed explanations and calculations related to our findings have been provided below.
Total Hay Produced
- While the exact amount of hay production in MT was not available, Seed Quest had reported that there 17 million acres devoted to alfalfa hay production in Argentina. This can be converted to 6,879,900 ha.
- A report from the World Alfalfa Congress states that on-farm average alfalfa yields in "rain-fed operations, production can go from 4-6 MT DM ha-1 year-1 under 3-5 cut systems in La Pampa to 18 MT DM ha-1 year-1 under 7-8 cut systems in Southeastern Córdoba."
- It was also found that "approximately 80% of the total alfalfa area is cultivated under rain-fed conditions for dairy, beef and hay production in the Pampas Region, while the remaining 20% is devoted to hay and seed production under irrigation in the Northwestern, Western and Patagonia regions."
- Based on the above finding that hay in Argentina is mainly cultivated under rain-fed conditions, we will take the mid-value of 11 (4+18/2) tonnes of dry material per hectare per year as the average yield and calculate the total hay (Alfalfa) production as approximately 625,445 tonnes (6,879,900/11).
Total Market Value
- The market value of hay production in Argentina was not available. Therefore, we will calculate an approximate value using the export price of hay.
- According to the World Alfalfa Congress, the average price per tonne for hay in Argentina in the first semester of 2018 was USD 342. With this information, the total market value of 625,445 tonnes can be calculated as USD 213,902,190. This is equivalent to around 16.28 billion in Argentina's local currency (ARS).
- The report further states that 54,423 MT of Alfalfa hay was exported during 2017.
- A report from the 6th China Alfalfa Development Conference (Chinese title translation) has mentioned that the main export destinations for Alfalfa hay in Argentina are "UAE and Saudi Arabia, and to a much lesser extent, Jordan."
Hay Plantation and Harvest
- According to Seed Quest, Argentina has approximately 17 million acres devoted to alfalfa hay production.
- While the average hay harvested per acre was not available, it was found that during the rain-fed conditions, production ranges from 4-18 MT of dry material per hectare per year and under irrigation, the harvest ranges from 10-18 MT of dry material per hectare per year (the World Alfalfa Congress).