Australia: Hay export ban would not work

A proposal to place a three-month embargo on the export of oaten hay out of WA has been labelled an extreme measure and a sovereign risk event. The suggestion was put forward at a drought crisis meeting in Yornup last week, as livestock producers grapple with feed supply shortages in dry conditions. However, it has not been well-received by local hay growers. Williams grain and hay grower Mark Fowler understood there was a degree of desperation from livestock producers in dry conditions, but said an embargo on exports was a bad idea for a number of reasons. "It would hurt the WA hay sector badly to put in place a mandated solution like what is being proposed," Mr Fowler said. "Firstly, export hay businesses are just another business going about their business, with contracts and markets to supply. "Putting an embargo in place would be a fairly extreme measure by the government and would be considered a sovereign risk event." Mr Fowler said if such a decision was made, exporters ...