Record alfalfa crop for S&W Seed.
Today's comments in the Wall Street Journal (August 20, 2012) about the plight of cattle and dairy farmers due to the drought mentions the problems of growing alfalfa (poor harvest) causing high hay prices in the Western United States.
S&W Seed (SANW) is not having any problems. In fact, due in part to the good health and lack of pests this year the leafcutter bees, this year's pollination was better than average. Seed yields will be higher than they have been over the past few years. Megachile rotundata, the alfalfa leafcutter bee is used to pollinate alfalfa grown for seed, which it does far more efficiently than honeybees.
Since the problems that other growers, especially in Australia, have been having will result in lower yields the lack of seed will mean customers will be on allocation and prices will remain high, or even increase.
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- the Wall Street Journal