Western Australian livestock feed producers have been working around the clock to fulfil orders, with demand skyrocketing in persistent dry conditions.
Milne Feeds first experienced a massive uptick in pellet orders for both sheep and cattle about seven months ago - and it has not stopped since.
The company has streamlined its Welshpool mill and is running 24 hours a day, seven days a week at maximum capacity to produce several thousand tonnes of pelletised feed per week.
Milne Feeds sheep product manager Brett Blanchett said there were massive fodder requirements from buyers across WA, which had placed increased pressure on supplies.
"Usually in drought years, we find there are some areas that have had a season break, which takes the pressure off two or three of our depots," Mr Blanchett said.
"We haven't seen that this year, instead we haven't seen an area that isn't under pressure - everyone is in a similar position and are looking for feed.
"This includes dairy producers, cattle feedlots and sheep producers with lambs on feed that are continuing to be fed whilst awaiting a processing slot.
"Add to that the normal ewe feeding in paddocks and confinement and things are pretty dire.
"(To help manage this) we have knocked out a number of our smaller lines to enable longer runs - we are absolutely flat out and trying our best to keep up."
According to a Grain Industry Association of Western Australia's crop report last month, there is expected to be an increase in both lupin and oat area from last year due to the rundown in stocks and current high prices on offer.
The report said the reduced area of plantings and increased demand for these grains as livestock feed had pushed prices up to decile eight to nine levels for both crops.
Mr Blanchett said this had affected growers, particularly as livestock prices had fallen to a decile three or four and while grain inputs into the pellets remain at those eight to nine levels.
He said the disconnect made it difficult to not only feed sheep, but also to make a profit out of them.
"It isn't so much about feeding sheep for profit this year, it is about making them saleable and keeping them alive," Mr Blanchett said.
He said Milne Feeds had no issues with inputs for the rest of the feeding season, which was expected to finish in July - all things being equal.
However, said lupin growing areas were also under pressure.
"I am guessing lupins will be dropped out of some programs," he said.
"Lupins are a long season crop and haven't had a break yet, so yields may be down.
"(Looking into the future and at the current conditions), I think there may be a period where lupins are more expensive and in very short supply until the new season's harvest is underway.
"It is difficult to accurately understand the lupin stocks onfarm and in CBH - that is a concern for feed millers."
Milne Feeds is in the process of building a new feed mill which will double the company's capacity.
Running alongside the current mill, it is expected to come online later this year.
"It obviously doesn't help us now, but it is under construction and will be in operation later this year," Mr Blanchett said.
