Meatwork closures send prices tumbling

The shutdowns due to coronavirus cases have wiped more money off lambs, with heavy types the most affected.

Downward trend: Crowded scenes like this in Bendigo at a record-breaking store sale are a distant memory at this week’s prime market, where it was rare for pens to make $200.

LAMB prices were thrown into disarray this week by the closure of key Victorian meatworks due to COVID-19 infections among abattoir workers.

Price hits of $20 to $30 were evident in early trading this week with some regular domestic and export orders sidelined, with the lack of buying power exaggerated by winter slowdowns at other plants.

The JBS Swift plant at Brooklyn and the Australian Lamb Company at Colac have been forced to close due to confirmed coronavirus cases.

Midfield Meats at Warrnambool has also suspended production as it tests its workforce.

All three plants are major players in the auction system for lamb and mutton, as well as buying direct and dealing in forward contracts. ALC also has the Coles contract kill.

There was no supermarket buying activity at the Bendigo prime market on Monday, and no buyer from ALC.

JBS Swift did have a representative watching the sale.

South Australian processor TFI was quiet, and Midfield Meats bought only a small percentage of the stock it would usually handle.

Lamb markets further north on the same day, including Corowa and Dubbo in NSW, also recorded much weaker results, noting the disruption of COVID-19.

There was a surprising jump in supply out of NSW, with Dubbo yarding 23,600 lambs or about 16,000 more than a week ago.

While new-season lambs are starting to appear, the bulk were old-season lambs.

The mix of restricted processor competition and more lambs combined to wipe more money off lambs, with heavy types the most affected.

A lot of slaughter lambs were quoted between 600c and 700c/kg carcass weight at saleyards earlier this week.

There were some modest premiums for any nicely weighed trades, at 20-24kg, which still pushed over 750c/kg, but the higher-priced lots were in limited numbers.

In dollar a head terms, $200 was a rarity, with Bendigo posting a top of $207 for lambs weighing well over 30kg cwt. The best price at Corowa was $220 and at Dubbo it was $214.

The NLRS did have some lots of extra-heavy lambs making less than 600c/kg.

Prices then cascaded down.

Heavy lambs from 26-30kg cwt ranged from $170 to $199, with the general run of trades from $150 to $180 depending on quality.

Lightweight crossbred lambs sold at mostly $115 to $145 for those with some frame; the secondary small lambs slipped below $100.

Merino lambs also experienced price corrections, with agents opting to pass some pens in at Bendigo.

The mutton market also weakened, but continued to be supported by low numbers of sheep.

Northern processor Fletchers of Dubbo was back buying heavy sheep at Bendigo this week.

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