But if Australia is to take advantage of the demand, it needs to act fast as other countries are already moving in for their share of the pie.

Visiting Canadian feed exporter Ed Shaw told the Australian Fodder Industry Association (AFIA) conference that the Gulf region was the "tsunami of the forage industry".

"The Middle East market has emerged very rapidly and without discipline," he said.

"For example, in 2006, the Abu Dhabi emirate opened up a 600,000t alfalfa tender for import.

"This is about 33 per cent of total Japan forage imports, or more than 50pc of the total alfalfa imports, and thus has caused significant challenges to this marketplace.

"The reason for this sudden import is the need to reduce the use of their aquifers and to protect them.

"This can be described as the importation of water from other countries in the form of forage and grain crops."

Mr Shaw said the Middle East market was new and real, but one full of challenges and, in many cases, unchartered waters.

"The first challenge is that exporters must ship only to the successful local companies who are allowed to participate in the tender," he said.

"Many of these have had zero experience with agricultural products, expect huge margins, take zero risks and do not use any of their own monies.

'They are in fact a document and money transfer-through operation.

"Some of these have even set up alfalfa growing operations in surrounding areas with heavy subsidies from the Abu Dhabi government."

Mr Shaw said the government recently added 200,000 tonnes of grass hays on the list, which includes oaten hay.

"This opens up opportunities for Australian exporters," he said.

"This market is just the beginning.

"There are signs on the horizon that Saudi Arabia is going to stop using precious water for low valued crops, and has in fact just signed a contract to start importing a large quantity of wheat.