The dynamics of the South African lucerne hay industry (Part 1)

Estimated reading time: 10 minutes

  • Lucerne hay is undoubtedly one of the most important forage crops used in animal nutrition globally.
  • Weather remains one of the most critical determinants of lucerne hay availability, quantity, and quality in South Africa.
  • Lucerne and lucerne hay are widely recognised as high-quality, multipurpose feed within the animal feed industry.
  • Feeding lucerne hay to livestock delivers numerous benefits.
  • The digestibility and protein content of lucerne increase as the plant develops, but only up to a certain stage.

Lucerne hay is undoubtedly one of the most important forage crops used in animal nutrition globally. This article is part of a series that sheds light on the intricacies of the South African lucerne hay sector and highlights key industry dynamics.

Lucerne hay quality is categorised into different grades: supreme, prime, grade 1, grade 2, and grade 3, each exhibiting distinct characteristics and nutritional attributes relevant to dairy cattle. As with most agricultural commodities, the producer price of lucerne hay is primarily driven by supply and demand.

Price fluctuations reflect the entry of new producers into the market or the exit of existing ones, illustrating how sensitive the industry is to external factors such as weather conditions and international demand. South Africa exports around 160 000 to 240 000 tonnes of lucerne hay annually, mainly to neighbouring countries and the Middle East. In recent years, exports to China have increased significantly, reflecting growing international interest in South African produced lucerne hay.

Weather remains one of the most critical determinants of lucerne hay availability, quantity, and quality in South Africa, with these variables all having an impact on the local prices producers receive for their product.

This series of articles aims to provide insight into the dynamics shaping the South African lucerne hay industry. Further research is needed into how specific weather patterns, such as temperature, rainfall levels, and rainfall timing, affect lucerne production and quality, as well as how global demand trends influence South Africa’s competitiveness in international markets.

Background

Lucerne hay (Medicago sativa L.) is one of the most important forage crops globally. It is widely used as animal feed and serves as a valuable cash crop in agricultural systems. Owing to its high nutritional value and palatability, lucerne is a versatile roughage source that can, in many cases, compare favourably with concentrates. This characteristic is particularly advantageous for high-producing animals such as dairy cattle (Scholtz, 2001).

The crop can be cultivated across diverse soil types and climate conditions, which adds to its adaptability. However, lucerne production is constrained by its high water requirements and the need for optimal weather conditions during haymaking (Moot, Teixeira, and Brown, 2012). In South Africa, lucerne is predominantly produced under irrigation where water availability is more reliable. Most irrigation schemes are located in dry or arid regions, which are well suited to lucerne hay production (Scholtz, 2008; Scheepers, 2015).

South Africa produces over 1,5 million tonnes of lucerne hay annually, according to the former Department of Agriculture, Land Reform and Rural Development (DALRRD). This volume includes lucerne used for both haymaking and grazing. On average, only about 400 000 tonnes of hay is officially graded each year, representing the volume available to formal domestic and export markets.

The lucerne hay industry’s contribution to South Africa’s agricultural GDP remains unknown, largely due to the availability of industry data. In 2022, DALRRD estimated the gross value of lucerne production at R5,771 million. Due to the lack of industry information, accurate estimates of the area under lucerne, as well as the proportions allocated to grazing versus informal and formal markets, are not available.

Lucerne hay quality in South Africa fluctuates throughout the production season, largely as a result of weather-related variation during production and haymaking. This highlights the strong influence of environmental conditions on hay quality. South African lucerne hay is graded into five categories based on a quality index that incorporates acid detergent fibre (ADF), ash, and lignin content (Scholtz, 2008; Scholtz, Van der Merwe, and Tylutki, 2009; NLT 2023).

Producer prices for lucerne hay are driven mainly by supply and demand dynamics in domestic and international markets. Maintaining high-quality hay is essential for producer profitability, as quality is positively correlated with the prices obtained across different grades (Lacefield, 1988; Wedin, Burger, and Ahlgren 1956; Anderson and Thacker, 1970; Scholtz, 2001, 2008).

Lucerne hay production in South Africa has evolved significantly and now plays a central role in animal nutrition, crop rotation systems, enterprise diversification, and farm cashflow management. Despite its importance and the limited availability of suitable substitutes in the feed sector, there is still limited understanding of the factors influencing lucerne production, quality, and profitability.

Recent studies have not examined producer prices, production volumes, export trends, or the interactions between these elements and the broader industry structure. This article seeks to address this gap by providing an industry overview. It examines the role of lucerne hay, production dynamics, determinants of quality and yield, producer prices, and market interactions, and explores how these factors influence producer price outcomes within South Africa’s lucerne hay industry.

History of lucerne hay

The history of lucerne production in South Africa is linked to the rise of intensive, commercially driven livestock feeding systems. Lucerne is believed to have originated in parts of Asia and the Middle East, and its earliest recorded use as a forage crop dates back more than 3 300 years (Westgate, 1908; Bolton, 1962; Michaud, Lehman, and Rumbaugh, 1988, as cited by Scholtz, 2008). From its centres of origin, lucerne spread across Europe before being introduced to various European colonies.

While the plant was formally known as ‘lucerne’ in the eastern United States, the Spanish-introduced term ‘alfalfa’ has since become more common there. Today, lucerne remains the prevailing name in European countries east of Spain, as well as in South Africa. The common and local names given to the crop reflect its broad use and echo the chronicles and activities of ancient civilisations (Scholtz, 2008).

Lucerne found its way from France to the Cape Colony in South Africa around 1850. It first gained prominence as a feed source on the region’s extensive ostrich farms. Although ostrich farming later declined, lucerne persisted and eventually became one of the most widely cultivated irrigated crops in the country.

Today, the dairy industry is the largest consumer of lucerne hay, followed by the animal feed manufacturing sector, and an increasingly significant export market. The feed processing industry recognises lucerne as a key protein source in South African animal feeds due to its high crude protein content (on a dry matter basis) and its good complement of macro- and trace minerals, as well as fat- and water-soluble vitamins (Hanson, Barnes, and Hill, 1988; Scholtz, 2008).

Lucerne hay as an animal feed

Lucerne and lucerne hay are widely recognised as high-quality, multipurpose feed within the animal feed industry. The crop can be harvested and utilised as green chop, hay cubes, hay silage, or grazed directly by a broad range of livestock. Both ruminants, such as cattle, sheep, and goats, and non-ruminants, such as horses, make extensive use of lucerne in various forms (Mueller, Undersander, and Putnam, 2008).

Lucerne possesses several distinctive characteristics that set it apart from other hay sources. It shows a marginal decrease in digestibility even at increased intake levels, contains moderate neutral detergent fibre (NDF), and has a denser cell wall structure that supports higher intake. Its high buffering capacity and moderately rapid fermentation rate are additional advantages. Lucerne hay is also notable for its high pectin concentration, a particularly valuable trait in animal nutrition (Van Soest, 1987).

Feeding lucerne hay to livestock delivers numerous benefits. Its high nutritive value and exceptional digestibility make it a preferred forage option. Lucerne hay offers a higher energy and protein content compared to many other crops, supplying a balanced nutritional profile. Carbohydrates, abundant in lucerne hay, serve as a primary energy source and play a pivotal role in sustaining livestock health. Protein, equally essential, underpins growth, maintenance, lactation, and reproduction, with lucerne hay supplying ample amounts to meet these needs.

As a forage legume, lucerne is also richer in minerals than grasses, supplying calcium, phosphorus, and magnesium, which are essential for skeletal development, dental health, and muscle function – this underscores lucerne’s role in supporting animal health. Lucerne hay’s mineral density further promotes milk quality in livestock. Overall, the inclusion of lucerne hay in the livestock diet is a strategic choice, providing a comprehensive array of nutrients essential for optimal health, growth, and productivity (Higginbotham et al., 2008).

Quality vs performance

In addition to its high nutrient levels and digestibility, lucerne’s unique structural and non-structural component ratios differentiate it from alternative forages. Its palatability and brittle texture promote high dry matter intake (DMI). However, several factors affect the nutritional value and thus the quality of forages. The stage of plant maturity at harvest is correlated with the digestibility thereof. As lucerne matures, ADF increases, leading to reduced nutrient availability due to increased lignification (Lacefield, 1988).

The digestibility and protein content of lucerne increase as the plant develops, but only up to a certain stage. Beyond this point, the nutritional value declines due to the progressive deposition of lignin in the cell walls, which hinders rumen microbes from effectively degrading the forage and utilising its cell contents. As the plant matures, the leaf-to-stem ratio changes, with stems eventually dominating the biomass. This is problematic because stems contain higher concentrations of lignin (Scholtz, 2008).

Since roughage constitutes a substantial portion of ruminant diets, its quality significantly influences animal performance and feed intake (Jung, 1997). Ruminal fibre digestion is a critical process, relying on microbial adhesion and fermentation of cell-wall polysaccharides. This unique capability enables ruminants to transform otherwise indigestible raw materials into highly valuable nutrient sources for human nutrition.

Fibre digestibility depends on the proportion of fibre that is potentially degradable relative to the total amount of fibre, and on the rate of fibre digestion and passage through the rumen. In the case of dairy cattle, the more digestible forage is, the higher the net energy for lactation (NEL) and dry matter intake (DMI) (Dado and Allen, 1996).

Effective roughage digestion requires a ruminal pH above 6. However, total mixed rations (TMRs) formulated with supreme or prime lucerne – typically lower in effective fibre and higher in readily fermentable carbohydrates – may not provide sufficient rumination (chewing) stimulus, reducing saliva production (Scholtz, Van der Merwe, and Tylutki, 2009c). Lower saliva production decreases buffering capacity, allowing ruminal pH to drop (Mertens, 1997). A pH below 6 creates an unfavourable environment for rumen microbes, lowering roughage digestibility (cellulolysis) (Mould, 2003).

According to Scholtz, Van der Merwe, and Tylutki (2009c), exceptionally high-quality lucerne can oversupply protein, leading to protein-heavy TMRs that require additional energy to metabolise and may contain insufficient NDF. For instance, rations containing very high-quality lucerne hay with low NDF should contain very high forage levels to meet a cow’s fibre requirements and maintain rumen health (microbes, pH, and overall digestibility). Under such conditions, lucerne hay no longer fulfils its primary role as a functional component of the diet. – Dr Hermias van Niekerk, Department of Agricultural Economics, University of the Free State

The second instalment in this series in the next issue of Stockfarm, will focus on the grading standards and quality of South African lucerne. For more information or references, send an email to vNiekerkHN@ufs.ac.za, or visit the National Lucerne Trust website at www.lusern.org

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