Boutique Hay

Here is a new idea in hay sales, as far as I know. Curious as to whether hay dealers/feed stores would find this a profitable model, and if horse owners would pay for the service.

A local hay dealer has started up a niche market hay service. It’s a clever idea for value-added hay sales. Her model doesn’t fit my needs but I’ve been watching acquaintances sign on to her program and crunching the numbers.

She sells a large square that weighs about 330 lbs, for about $100 plus a $30 delivery fee.

Delivery includes her loading it into the custom-sized small hole hay net you already bought from her, that she installed and attached to the stall wall and floor.

The idea is the horse then has free choice hay for about 2 weeks (about 23 lbs a day). Some horses finish it up in 10 days (that would be about 33 lbs a day).

The price varies a bit based on the type of forage and the actual weight of the large square. She is selling alfalfa/second cut timothy mixes and very nice fine timothy third cut, and other hay as well. She is importing from the commercial dry belt hay growers; this kind of hay is not grown locally.

She tests for sugar and nutrients, and started out supplying the IR/Cushings market. However the people I know who are buying her hay don’t have IR horses, though they do have easy keepers prone to obesity. They like the fact that the hay is tested, but aren’t particularly interested in getting the test results to peruse. They aren’t using the results to calculate mineral supplements, for instance. And they aren’t necessarily getting the same hay each delivery, as far as I know.

She also tests for glyphosphate and advertises glyphosphate free hay. This I think might be a bit of red herring. There is certainly Roundup Ready alfalfa out there, but my guess is that by harvest, it would test glyphospate free, if the pesticide had been used to clear weeds earlier in the season.

I understand that glyphosphate is used at times to dry down annual cereal crops before harvest, and I do find it a little unsettling that it’s used so close to harvest. But you wouldn’t do this on a field of perennial hay grass because you wouldn’t want to kill the grass, and there is no Roundup Ready timothy out there. There are broadleaf herbicides you might use on a grass pasture, but those are another category altogether.

Even with the small hole nets, the easy keeper horses that are on this system are getting a lot of hay because they stand in their stalls and worry away at the hay all day. It’s very different to grazing on a nice pasture, where the horses wander, and eat with no stress to their jaws and polls. On the other hand, maybe the fact that they hay is very low sugar is keeping them from getting laminitis when their intake is close to 30 lbs a day. However, an alfalfa mix would not be my choice for free feed hay for an easy keeper.

Some of these horse owners also still have small bales, and are feeding loose hay in addition to the large square.

My mare does very well on 15 or 16 lbs of good timothy in 4 or 5 feeds a day, which keeps her voluptuous but not quite obese. She is currently on pasture, and plumping up on the fall grass :). I like the fact that if I get a ton or ton and half at once, I am feeding the same batch of hay for four or five months and can transition to the next batch. If I had more storage I would certainly get 4 tons all at once every September.

So the free feed model isn’t one that would suit my horse.

But separate from that, when I crunch the numbers on the large squares, I get sticker shock.

One large square is about 1/6 of a ton, so that makes a ton $600. Then there is the delivery fee of $30 per large square, so $180 a ton. That makes a total price of $780 a ton, maybe a bit less if the bales come in at $90 rather than $100.

I am paying $460 for a ton of very nice second cut timothy, delivered and we help the seller stack. My monthly cost at 16 lbs a day on paper is $110 or $1324 a year (in reality its closer to $120 a month or $1440).

The boutique large square hay, assumed its delivered every two weeks year round, works out to $3380 ($130 x 26) a year, plus or minus a bit.

The $460 per ton delivered is an average price for three string timothy from the local hay dealers. i think it’s probably selling for $100 something per ton at source, which would be at least an 8 hour drive away, a lot further if you go over the mountains into Alberta.

I have no idea of course what the business costs for the boutique hay are, and what the profit margins are. I don’t know if the 330 lb large square is a standard size in the dairy industry or if she needs to contract for a special size bale with her growers. I don’t know the real costs of her local delivery, but I’d be surprised if you could take a truck loaded with hay and two people out for much less than $100 a trip, given gas and wages and time.

I’ve had hay tested in the past, and if I needed low sugar hay, I think I’d still buy per ton at a similar cost to what I’m paying now. There are other dealers offering tested hay and post the tests online. If I needed to feed free choice hay, I could shove a full small bale down from the loft into an appropriate size nibble net.

But clearly the full service model is meeting the needs of a number of horse owners, even though its more than twice as expensive.

I doubt the people using this service have taken the time to compare the costs like you have.

My first thoughts were:

  1. How much room in the stall would this big bale take up? (or is it a stall/run type of thing?)
  2. How much of the bottom of the bale would be ruined by horse pee or other contaminants, since you said the net goes from the wall to the floor
  3. Does the net then become a floppy hazard at ground level once it’s getting low on hay?
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They are stalls with small runouts. The bale is more rectangle than square so runs long and higher against the wall.

I don’t know about pee. Since the horses tend to live with their faces in the bale, if they peed inside it would be the opposite corner. Most of them pee outside. The stalls are clean dry rubber mats and they put the net in the opposite wall from the water bucket.

As far as I know, all the horses on this system are barefoot. I agree, I wouldn’t want a shod horse pawing that net all night.

If you pick the hay up it is about $16 for a 50 lb bale. That is pricing it out of my budgeting for hay. of course I live so far away from that kind of hay ( I am in Alabama) that the transportation costs would be too great.

I wouldn’t mind buying bales that size because I would pick them up on a flatbed trailer and just feed them off of the trailer in flakes. The other services she provides do not add value for me so I would not pay for them. If I put a bale that size out in the pasture or in the stall my horses would eat out the best parts and pee/ poop on the rest and thus waste a large part of it.

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> If you pick the hay up it is about $16 for a 50 lb bale

Same here and you are lucky if the bale is 50 lbs. I weighed all the bales from a delivery once and figured out the per-ton price… it was not pretty.

I was just lusting after some 700 lb big square bales of timothy I saw advertised. But it’s 2 hours away, and once you figure the time and fuel, and I can get three or maybe four on my small flatbed trailer, and then I’d have to cut the strings and move chunks of it by hand into my hay storage room… it starts to sound like getting the small squares from the feed store is not that much more expensive. The feed store owner also deals with the suppliers and rejects anything that is not good quality, so by the time I get it, I don’t have to worry at all.

I can see this being useful for a situation where an owner is on vacation and needs a more convenient way to keep hay out for a bit - they can pay someone to do it (and maybe it won’t get done), or they can pay extra to have a bale set up like this.

I can see it useful for people with more $$ than sense.

But I cannot see it being in the least attractive for the average owner. But, that IS how boutique-type things work.

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What a terribly interesting idea.

Hay here is so weird and expensive. So many people have little storage and buy super small lots throughout the year. I can see how this could be a great option if you have a couple horses and can’t store very much, particularly if this provider has a lot of storage and is pulling from a single lot of hay (or has multiple lots with different goals/tests) so you get consistency.

How are the bales handled? It’s tough to just heave 300#s. Does she bring a skid steer or something?

The price is roughly in line with the Western alfalfa that gets shipped out here, so can understand the ballpark $$.

I think she’s got a man with a dolly to unload on our end.

Around here you can pick up local pasture grass hay out of the field for under $10 for a more or less 50 lb bale. You can get the same sort of thing delivered and stacked for about $12 with maybe a delivery fee.

A ton of 50 lb bales at $10 each would be $400 a ton (40 bales to a ton). For every dollar per bale price difference, the cost of a ton goes up or down $40. So if you get $9 bales it’s $360 a ton. If you get $11 bales it’s $440 a ton. Etc.

You can get really nice 3 string Timothy 100 lb plus bales for $460 delivered, depending on the weight of the bales there might be 20, 18, etc bales to the ton.

People with year round pastures source round bales ok in winter as we have a strong local dairy industry.

So the boutique hay is expensive compared to local prices.

Those prices are on par with alfalfa around here. Most of the larger feed stores carry Halls ( New Mexico) 50 lb compressed bales for about $16. But I have horses that stay overweight on grass hay so alfalfa is just for dessert. Nobody sells by the ton around here.

Grass hay ranges from $4-$5 a bale for bermuda or bahia hay that you pick up locally. I am driving to Tennessee for orchard grass bales for $6-$8 a bale and in 2016 in the drought a lot more. I would gladly pay more for premium timothy but I don’t really want to pay $16 a bale for grass hay. Several bales a day for 2.5 horses would add up pretty fast!

I guess my question was more: would you pay double the going rate for good hay in your region to get this personalized service for large squares?

@Scribbler - you will not know whether or not is it a profitable model unless you know all the costs involved. And no, I would never pay double the going rate for personalized service on larger squares. As the bale is eaten, don’t you have a lot of excess net? I just have big nets that hold 40+ lbs of hay, so I just fill them every couple days.

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No. But I also have plenty of loft storage and buy a year’s worth of hay at a time. I request by the ton pricing and pay close attention to price, weight and how it tests. I am 100% not the market for this.

But I can still see how this could be mighty attractive for someone who buys in small lots due to little storage space and has had stress finding and dealing with hay at certain times of year. Good, consistent, tested hay not only delivered to your barn, but delivered to your HORSE. Sure, that could be worth that price to those people. I know someone who would probably do it! She has very little storage, just recently had some stress about running low, needs tested hay, never buys by the ton. THAT is your market.

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I might do it in early Spring if I was running out of good hay and no other options were available. But that price is not sustainable for me all year long. I doubt that plan would be marketable where I live because people here will not pay over $5 a bale for hay without getting shell shocked. Even if the seller’s expenses made the price justifiable - nobody will pay that long term.

There are people around here who are paying that price per ton long term. Hay around here is craaaazzeeeeee.

This fall I got in touch with a big dealer to reup my western alfalfa. I had a per ton price last year. This year she told me they were only pricing it by the bale–$30 a bale. Bales I bought the year before weighed in between 85# and 130#, with many, many more on the light side than the heavy side. That’s $705/ton - $461/ton. Based on the mix of bale weights last year, I’d put a load at probably $650/ton or so.

I contacted another big dealer who was selling it for over $1000/ton.

They don’t have any problem selling it that way, and at that price.

So, yeah, there’s a market for this service in costly hay markets! :lol:

@Scribbler I don’t know where you are, but if you’re in CT, can you shoot me the contact info for this service? I do seriously know someone who might be interested.

Not being a fan of free choice hay for stalled horses I’d not use this kind of system.

Cost wise, you’d have to do some “column A-column B” comparison using the same quality hay and same quantity fed and compare the horse condition at the end of some period (like a month). Part of this means including the cost of labor and the cost of “capital” (the net) and the relative costs of delivery.

My first impression is that this is a good revenue generator for the hay seller and a significant cost increase for the buyer. But I’d have to do that side by side comparison to be sure and no time this a.m.!!! :slight_smile:

G.

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I’m not in CT or anywhere near :slight_smile:

The folks at this barn that are buying into this service have the space to each store about 1.5 tons maximum; it’s a self board barn with individual lofts above the stalls that each person uses for hay, feed, tack.

Up to now people have either bought per ton from a hay dealer or farmer willing to deliver, or if they have a strong back, picked it up themselves from a local farmer for a good savings.

There’s also a feed store that does monthly deliveries of anything you want. Apparently they charge $30 a bale for 100 lb 3 string Timothy. So compared to that, the boutique hay service seems reasonable. I didn’t realize the feed store was charging that much as I’ve never ordered from them.

Because each loft only holds 1.5 tons maximum, you have to coordinate with other horse owners to put together a bigger order if you want to buy from a hay dealer. Also some of the dealers won’t come into the suburbs and deal with a bunch of individual lofts, cheques, orders, complaints and concerns when they can just offload 5 tons to a big boarding barn with one manager.

I think a big part of the boutique service is communication. The big hay dealers are busy men who don’t spend much time on phones or messages. They don’t like indecisive clients or people having buyer’s remorse like getting cheap first cut sight unseen and then wanting to return it because it’s too coarse, or wanting to a refund on a bale that had a gopher hole mud lump in one flake, etc. The maximum preferred communication from the big hay dealers is: Ok, I can bring in 5 tons of Timothy on Friday morning, here’s the price.

The boutique hay accommodates questions, anxieties, and individual feeding programs. I think she is happy to talk to her clients about glyphosphate contamination, sugar levels, inflammation, the specific needs of that horse that week, and to come out at any time with hay. I think too the clients get the reassurance that they are doing the “very best” for their horse.

I think it is a service that really appeals to people who are just learning about equine nutrition.

If you knew a lot you would start to pick holes in her program, and if you knew nothing you wouldn’t have a framework for understanding what she’s saying.

She might be a very very attractive supplier for a particular slice of the ammie market that really likes her extra service and relies on her advice.

To use a analogy, maybe we’re looking at a “Blue Apron” type of situation where a person is getting a “complete” service delivery and all they need to do is “unbox” the product and pay the bill. That’s not necessarily bad but it also does not necessarily lead to learning more about equine nutrition (just as unboxing the work of others does not teach a lot about food preparation, including the selection of ingredients). Nor does it begin to address a very likely consequence of this system, a fat horse.

For me, I would not pay for this service. I know how to pick my own hay and how to feed it correctly. I spent some time studying basic equine feed requirements and made some mistakes in applying what I studied. That’s how folks learn stuff.

For me, the short answer is “no.”

G.

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I just remembered - there WAS a company in Florida that had a business model like this. I say WAS because they went under after being in business for a short while. And from what I gathered on Face Book they went under owing buyers and especially hay growers tens of thousands of dollars.

They basically were buying loads from western growers and Canada, northern states and selling them for anywhere from $16 a bale to $28 a bale for western hay. They did deliveries of small amounts ( I think they stacked the hay also) all around a few areas of Florida. People in Florida that do not feed bermuda are used to pretty high prices for hay and there seem to be plenty of people that cannot buy semi loads that will pay for good hay in Florida.

I don’t know why they went under. Lots of possible reasons. Maybe the owners took too much money out of the business for personal use. Maybe the profit margin fell when fuel prices went up and the long haul from western states cost too much. Maybe the cost of hiring an employee ( employees) to drive around and deliver a few bales of hay to lots of places was not a cost they could recoup. Maybe the cost of buying trucks and maintaining them to do small deliveries was greater than the revenue derived from these deliveries.

There may very well be a niche market out there for her service. But is it large enough and profitable enough to make a go of it?

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I pay $390/ton for very good quality western Timothy, delivered and stacked, and could do it for less if I went locally. I can’t see any use case where a 330lb bale would be useful to me, so for me this service makes zero sense.

While I am not nearly as experienced as you :slight_smile: my reasons for not being interested in this model (even if the costs were lower) are the same.

Except for the kind of high strung OTTB that would rather crib than eat, I haven’t yet seen a stalled horse on free access hay that wasn’t fat. Indeed obese.

I fully understand the arguments about horses being trickle feeders and stomach acid, etc. But I also think the number one health hazard to pet horses these days is obesity, leading to IR issues as they age. I’ve watched a few horses especially ponies age into obesity related health problems, and then you really have a project on your hands managing the founder.

I think obesity is a bigger long term danger than the problems associated with only getting fed every 6 hours.

Even if you have a slow feed net, if your horse is eating 30 lbs a day of alfalfa mix, he is going to get fat.

The boutique hay dealer has a strong line on the crucial importance of 24/7 hay to combat “inflammation.”

Anyhow, I look at the mares who live on pasture. They eat themselves up to a nice fertile 7 on the Henneke scale over the summer, maybe drop down to a 5 in the winter. I don’t think many horses on good free choice feed maintain at a 5.