New Normal: Sheep market hot as flock rebuild continues

Farmers appear to have accepted high prices as the “new normal” to get into the market. Here’s what happened across saleyards last week.

A new baseline price for ewes and ewe lambs has emerged in recent weeks. Picture: Dannika Bonser.

FIRST-CROSS ewes have smashed price records at saleyards as producers begin to accept the new normal of $400 plus for top quality breeding stock.

Driven by feed and a better-than-expected price run for sucker lambs and mutton this spring more than $8 million changed hands at Victoria’s two premier crossbred sales held at Bendigo last week.

All producers selling ewes and ewe lambs received their best ever incomes as the market pushed into remarkable price territory of up to $448 for 1.5-year-olds and $444 for March/April drop ewe lambs.

“It is every bit as good as we were hoping for or expecting,’’ said Bruce Bickford, Ravenshoe Pastoral, who received a top of $435 for his 1.5-year-olds.

The ewe lamb sale at $444 was the highlight of the week, and even left breeders Geoff and Di Allan from Melrose at Mathoura in southern NSW lost for words.

“I don’t know what to say really – the money is just huge,’’ Geoff said.

The results came as buyers accepted that big money for young breeding ewes is now just part of the industry as it grapples with a shortage of stock amid strong returns for red meat.

“I think people now have an understanding that you have got to pay that money to get sheep – it is just a fact of life,’’ said Ballarat agent Phil McCunnie.

This season’s surge in prices for breeding ewes is underpinned by healthy lamb market returns. The Eastern States Trade Lamb Indicator is sitting at 761c/kg, compared to 752c/kg same time last year.

The prime market spiked last week, as demand for quality processing sheep outstrips supply. Price gains of $10 to $20 were recorded for ewes and wethers at major saleyards earlier this week, with carcass rates for mutton within $1kg of heavy lambs.

RuralBank regional manager agribusiness Josie Zilm said mutton could remain strong as seasonal conditions allowed farmers to carry more stock. “Demand from the US has underpinned the strength of the export market,” Ms Zilm said. “Restockers are looking to build flocks, while they’ve got feed around.

“Prices will come off for lamb, compared to mutton which should remain stable.

“You can reliably carry that stock through..

“People are coming to terms with the fact it feels like the new normal.

“Everything’s been cleared from the yards, no-one is saying it’s too expensive, people are coming to terms with the fact they’ll need to pay it .”

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