Now the trick is to look at problems with a positive and confident attitude.
Immediately I can see how to solve the poop problem ('cos elephants are cute but pooey). All you need is a large paddling pool filled with cat litter instead of water. At the base of the pool you need to fit a heat sensitive switch that turns on when the temperature is raised above it (like when poop drops) - this needs to be wired to an automated arm that gives the elephant bananas when he's pooed in the paddling pool full of cat litter.
Collect the poo on a daily basis and sell it as top grade fertaliser. With the funds raised from the fertiliser bargain with the local super market to buy outdated fruit and veg to feed the elephant. But ok you still need hay unless you want hephalumpy to get the runs.
Here's what I suggest in the hay department. Enrol the elephant in eco plough pulling and suggest to a local farmer he could get publicity for his farm shop due to the eco ele - in return he has to pay you in hay for ele. This also takes care of excercise.
The point is not to give up without first using all our problem solving skills!