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Dairy cattle forage in short supply, pandemic delays shipping, loss of domestic prime production areas a looming concern

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COVID-19 impact: Dairy cows' food sets off alarms, shipping delays cause tension, loss of domestic prime forage production areas is a future concern

The Wuhan pneumonia outbreak has caused fluctuations in food supply and demand. Besides affecting humans, it has also impacted dairy cows' food. Taiwan's dairy industry relies on imports for 50% of its hay needs. Recently, due to unstable shipping schedules, dairy farmers say, "In the past, we would order one container at a time, but now one container has to be split among two or three farms," raising concerns about future supply problems.

Huang Yen-liang, Secretary-General of the Forage Association, said, "Everyone wants to increase their stockpiles, so supply gets tight. Overall there is no shortage, it's just that arrival times are drawn out." However, Huang also warned that productive forage farms require extensive, low-input large-scale cultivation, yet Taiwan Sugar Corporation land is being developed batch after batch. Take the Shalun Farm in Tainan as an example - it is an excellent forage production area, but is expected to be developed into a green energy park within two years. The prime domestic forage production areas are shrinking rather than growing, and this is the real concern for the dairy industry.

Hay being transported after container unloading. Photo provided by Huang Yen-liang

International shipping times are drawn out, dairy farmers are simultaneously increasing stockpiles, creating supply tightness

Taiwan's dairy farming industry has four major production regions, located in Liuying, Tainan; Wandan, Pingtung; Fuxing, Changhua; and Lunbei, Yunlin, accounting for about 70% of the nation's milk production. Recently, dairy farmers have reported that imported forage has been affected by the pandemic, causing supply tightness.

Taiwan's dairy industry hay demand is around 500,000 tonnes, of which domestic production accounts for about 220,000-250,000 tonnes, slightly more than half. The main varieties are tropical forages such as pangola grass, Nile grass, and napier grass grown for green chop feeding. Imports are about 200,000 tonnes, accounting for 40-50%, mainly alfalfa, sweet oats, and Bermuda grass, with the United States and Australia as the main sources. Due to Taiwan's rainy summers affecting harvests, the domestic forage proportion fluctuates slightly, and since imported forage has higher nutritional value, even at more than twice the price of domestic forage, it remains an important feed for dairy farmers raising lactating cows.

Li Chun-nan, head of the third dairy production and marketing group of the Fuxing Township Farmers' Association, said, "I've heard shipping schedules have been somewhat unstable, so everyone's expectations lead them to order more to fill up their forage warehouses. In principle, each dairy farm has about one month of basic stock. If everyone orders, but the forage merchants' supply per period remains fixed, they have no choice but to distribute supplies." Li also believes that "the current situation doesn't warrant too much worry, and there's really no need to stockpile. Taiwan is hot and humid, and alfalfa can't be stored - it will mold if left too long."

Chen Kuang-hsiung, head of the dairy production and marketing group of the Wandan Township Farmers' Association, raises three to four hundred dairy cows. He said, "Forage is very hard to order now. U.S. shipping schedules are irregular, and dairy farmers are starting to get nervous." Forage deliveries are somewhat falling behind, but he doesn't dare stockpile either, since each order is at least one or two containers, and the farm doesn't have that much space. Maintaining normal inventory is enough. He believes that just like the fertilizer chaos, farmers' expectations lead them to deploy in advance: "Cows have to eat every day, so we might as well stockpile a little. Others can go without, but I don't want to be the one short."

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