Lamb Sales Prices Soften Due To Reduced Demand From Processors

Lamb Slaughter Volumes Forecast To Decline Due to April Public Holidays 

Re-stocker lamb prices have been strengthening over the past couple of weeks, increasing by 3 per cent week-on-week, according to Meat & Livestock Australia’s (MLA) Weekly Sheep and Cattle Market Wrap published on April 7.

Overall, lamb prices have been softening, with trade lamb prices dropping by 31c/kg cwt week-on-week to reach their lowest price in 12 months, it adds.

Light lambs were looking much the same, MLA says, with a softening in prices again at 31c/kg cwt week-on-week.

The softening in lamb prices across the board is due to reduced demand from processors and the continuation of varied quality that has been seen at saleyards over the last few weeks, it points out.

Slaughter

MLA notes that lamb slaughter has declined nearly 8,000 head week-on-week with a 43 per cent reduction in WA over the past two weeks as a result of processing facilities facing difficulties in accessing skilled labour due to rising COVD-19 cases in the state.

Lamb slaughter has dropped from 47,319 lambs three weeks ago to just 26,890 last week

SA has also experienced a softening in lamb slaughter by 27 per cent.

Goat slaughter is still falling, dropping by 15 per cent week-on-week, MLA says.

Looking Ahead

MLA says smaller national yardings and reduced processing capacity can be expected this month due to the number of public holidays, with slaughter volumes set to drop to rates typical of the April period.

Additionally, it notes that seasonally, lower slaughter rates occur at this time of the year. Given there is three four-day weeks coming up this month due to Good Friday, Easter Monday and ANZAC Day, the impact of the shorter weeks is expected to be more pronounced than in the previous two years, when there have only been two shortened weeks due to Good Friday and Easter Monday, it notes.

MLA notes a majority of heavy lambs and trade lambs are purchased by processors. This means the absence of a major Monday sale such as Dubbo or Bendigo will lead to lower slaughter numbers and volatility in the indicator.

Click on the following highlighted link for MLA's more comprehensive analysis of the outlook for sheep sales; and the following highlighted link for ABARES' latest forecasts for sheep sales.