Hay Market Research: New Zealand, Part 1
The estimated amount of pasture/lucerne (hay) produced in New Zealand is 13.8 million metric tons, while its market value is estimated to be 5.5 billion NZD. The attached spreadsheet has been populated with the additional requested information.
- In 2012, New Zealand harvested 862,057 ha of pasture/lucerne (hay).
- In 2019, New Zealand exported hay worth $7.46 million.
- The quantity of hay exported was 28.26 million kg (28,260 tons).
- The top countries to which New Zealand exports hay to are Japan, Australia, Korea, Hong Kong, Singapore, China, Saudi Arabia, New Caledonia, and the United Arab Emirates.
- Japan is the largest importer of hay form New Zealand with a share of 42% ($3.17 million). The second-largest importer of hay is Australia, with a share of 31% ($2.33 million), and the third-largest is Korea, with a share of 16.3% ($1.22 million).
- Lucerne produces 12-20 t DM/ha/yr.
The research team could not find pre-compiled data for the market value and amount of hay produced after extensive research through government websites, news articles, and market reports. It was, however, able to find useful information that helped triangulate the requested information. The following steps were taken to triangulate the total hay produced (in metric tons) and total market value (in local currency) of hay in New Zealand. We found data on the total amount of pasture/lucerne (hay) harvested in 2012. Using this data, we were able to determine the total amount (in metric tons) of pasture/lucerne produced by multiplying the number of hectares harvested by the average yield of a hectare of land. Lucerne produces 12-20 t DM/ha/yr. The crop's average yield has been assumed to be 16 t DM/ha/yr ((12+20)/2) for the calculations.
The total amount of pasture/lucerne produced = hectares of pasture/lucerne harvested * average yield for the crop.
Total amount of pasture/lucerne produced = 862,057 ha * 16 t DM/ha/y = 13.8 million tons.
Next, the team divided the dollar value of hay exported by the quantity of exported to find the price per 1 ton of hay. The price per 1 ton of hay will be multiplied by the total amount of hay produced in metric tons to get the estimated total market value of hay produced in New Zealand.
The market value of lucerne produced = (total tonnes of hay produced * price of 1 ton of hay)
Price per 1 ton of hay = Total value of exports/ Quantity of hay exported
The quantities that were provided in kilograms were converted into metric tons using a rate of 1 metric ton is equal to 1,000 kg. The quantity of hay exported in metric tons = 28.26 million/ 1,000 = 28,260 tons
Price per ton of hay = $7.46 million/ 28,260 tons = $264
Market value of pasture/lucerne produced = 13.8 million tons * $264 = $3.64 billion.
The market value was converted from USD to NZD, using 1 USD equal to 1.51 NZD.
Market value of pasture/lucerne in local currency = $3.64 billion * 1.51 = 5.5 billion NZD