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US hay traders feel the pain of low exports
American roughage exporters are having a difficult year. In recent years, they saw strong exports to numerous destinations in Asia and the Middle East, but this year exports have largely collapsed. One major exporter with six subsidiaries has even filed for bankruptcy.
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The company, Anderson Hay Group (AHG), isn't going bankrupt outright, but is using the bankruptcy, in true American fashion, to relaunch. Other companies are also feeling the pinch. Many buyers of American hay, for example in China, are ordering significantly less this year, either because they need it now or because returns don't allow for it. Countries like Japan, South Korea, Saudi Arabia, and the UAE are also seeing less market activity.
Normally, there's more than enough demand for American hay, which is grown on irrigated fields, particularly in the states of Washington and Oregon on the country's west coast. Last year, Washington sold $542 million worth of hay across the border, while Oregon sold $602 million to foreign destinations.