Current Alfalfa market update

Australian Lucerne Seed Marketers in general, have sold large amounts of both Proprietary and Public, (certified and uncertified) alfalfa tonnages in the past 12 months with 10,228mt exported to the globe in calendar year 2014. This level of sales, (second only in quantity to 2010 – 10,580mt), should ensure that both seed producers and seed companies will begin the bulk of the 2015 marketing season with very little carryover. Overseas destinations for this seed was dominated by Saudi Arabia 2602mt (25%) and the USA 2380mt (23%), and was well supported by Argentina 1112mt (11%) and Italy 1034mt (10%). In all, 40 countries received stocks from Australia during the year.

Driving this demand was the fact that Saudi Arabia planted good acres of seed with a massive 2400mt shipped in the June to December period. Poor seed harvests in Europe, also saw increased demand in this market, topping off what has been a very good year for alfalfa seed sales.

Grower level seed pricing has increased in recent months driven by what seems to be a good demand cycle in major markets, and assisted somewhat by the reduction in the strength of the AUD against the USD. If you couple this with a low carryover position in both the major seed producing countries of non-dormant alfalfa, Australia and the USA, it points to being a good year for the Australian alfalfa seed industry. Of course the biggest unknown at present is what the crop will be, with harvest now underway.

Genesis II seedling being windrowed

Lucerne seed going over the gravity table