Ontario hay producers target export market

Ontario hay growers finally have a central bale compressor that could accelerate market access for exports.

The Hay Press Company’s bale compressor shrinks bale size to allow for more efficient shipping.

Why it matters: Building an export market for forage could become another income stream for Ontario farmers and expand domestic forage production.

The Steffen System’s 3400 bale compressor installed at Marhaven Agri can convert large 3 x 3 and 3 x 4 hay bales into units as small as 11 x 16 x 30 inches with a consistent weight of just under 50 pounds. It can process approximately 16,000 tons of hay per hour. 

The Hay Press Company chose Marhaven Agri as its base because it is an established hay trucking hub equipped with a weigh scale, equipment and facilities to accommodate the hay press. 

The international hay trade is worth an estimated US $10 billion a year. HPC’s hay press, which can convert bales and compress them, provides an avenue for Ontario forage producers into overseas markets, said Fritz Trauttmansdorff, Ontario Hay and Forage Cooperative (OHFC) president. 

The OHFC has been working for years to get a bale compressor up and running in Ontario and it has finally come to fruition with the Hay Press Company, which is privately owned but closely connected to cooperative members.

“It’s a must-have if you want to enter this type of business. For us, it’s critical infrastructure.” 

Formed to facilitate overseas hay exports from Ontario, the OHFC realized the international export market requires 90 lb. 16 x 17 x 18-inch bales to reach the maximum weight for the overseas container system. The press’s 500 tons of compression force can handle that. 

James Fisher, HPC president and general manager, said the OHFC’s overseas market would create an avenue to sell local overstock hay volumes while providing expansion potential in forage production. 

He says bale conversion will become the standard within the North American market because of its handling and logistic efficiencies to achieve maximum weight for shipping. 

“There is an advantage with these processed bales over regular small square bales in that we can load a tandem-tandem tractor-trailer to its maximum weight, which is all that’s legal for some U.S. states,” said Fisher.

In addition, converted bales allow for 60 to 80 per cent more hay storage in the same footprint as conventional small bales, and with a more consistent weight. 

From a labour and efficiency point of view, the preference is to harvest large square bales that provide three times the amount of forage at a fraction of the cost of small bales. 

“By being able to harvest big square bales fast and efficiently, and convert them into small bales as the customers need and want, it allows us to access both markets,” Trauttmansdorff said.

Compaction, dryers and improved harvesting techniques remove a lot of the weather uncertainty in hay production, making it a comparable crop in terms of risk and sales, he added. 

The hay press provides consistent bale weight, allowing consumers to budget appropriately for feed, storage and price, and allows sellers to predict income and expenses, said Fisher. 

With HPC online, Trauttmansdorff said OHFC would make inroads on export markets previously out of reach for individual farmers due to logistics, compliance, insurance, language barriers and sales volume. 

“The quantities of hay on each of those deals are usually fairly large, so you need an organization that can aggregate the right amounts and the right type of hay and then set it up with an oversea customer,” said Trauttmansdorff. “They expect a uniform, consistent weight, plus type and quality of hay.” 

While the market doesn’t lack forage supply, droughts like those felt in the western U.S., which produce significant quantities of export hay, create an opportunity for Ontario. 

“Let’s say you milk 50,000 cows in the desert in Saudi Arabia,” he said. “You want to diversify your supply. You don’t want to make yourself dependent on one producer or just one area.” 

OHFC has 62 members and capacity for growth depending on how access to the export market expands. Trauttmansdorff said several members are growing pure timothy hay for the overseas market. Due to good growing conditions, proximity to large urban centres, access to containers, transportation, logistics and seaway, he rates Ontario’s export potential as fantastic. 

“Each type of livestock has different requirements, and we can grow them all. We can grow, for example, pure timothy to access the high-end horse market,” said Trauttmansdorff. 

“We can grow coarse alfalfa to address the camel market, and we can grow high-quality dairy alfalfa to address the dairy market.” 

OHFC will focus on the Middle East, the Caribbean and Asia, particularly Taiwan, China, Japan, Korea and Indonesia. 

Before people plan to grow hay, Trauttmansdorff said he hopes they connect to OHFC for mentorship in selecting suitable mixes, hay types and packaging to build a robust forage supply chain. 

“I want people to think of it as an IP program,” said Trauttmansdorff. “If they want to join us or do something in the forage industry, they talk to us beforehand so we can advise them properly on what type of hay (is needed).”