Sheep and lamb price drop
Export demand and the closure of a number of abattoirs has contributed to a recent drop in sheep and lamb prices.
MEAT processor shutdowns due to coronavirus outbreaks and soft export demand have weakened lamb prices with rates sliding by as much as $40 on heavy lambs.
Domestic and heavy slaughter lambs fetched around 600-700c/kg carcass weight at major markets in the past week, compared to the high-900c/kg range this time last year.
The Eastern States Trade Lamb Indicator finished Monday at 796c/kg, down 140c/kg on the 936c/kg this time last year.
The price drop comes as a number of Victorian meat processors, including the Australian Lamb Company at Colac and JBS Australia’s Brooklyn plant, shut down due to a number of coronavirus cases. Midfield Meats at Warrnambool has closed as a precaution.
Prices fell away sharply at Bendigo early this week as the market felt the impact of the meat processor closures, which come during the low point in lamb supply.
Livestock agents and producers were now concerned what the closures, and potential future outbreaks, could mean when the spring flush hits. FP Nevins & Co livestock agent Chris Nevins said prices at Bendigo were down by about $30 on last week.
“I spoke to vendors after the sale and we said ‘well, at least they are sold’. We just do not know where we are at the moment,” Mr Nevins said.
“Nobody knows. It is just a day-to-day proposition at the moment. I’m advising vendors to sell while they can, while they (some processors) are still operating. No one knows if they will be tomorrow, not even the buyers. We really are in uncharted waters.”
Meat and Livestock Australia analyst Adam Cheetham said lamb prices were coming off “record highs”, after nudging 1000c/kg carcass weight last season. “The fact prices have eased is not surprising,” he said.
“But in the last week or so we have seen a rebound, which indicates there is still strong demand out there for restockers and for young lambs.”
Mr Cheetham said the beginning of winter traditionally heralded a low point of supply for the lamb and sheep market.
“Yardings are some of the lowest seen in 20 years,” he said.
Going forward, he said the impact of coronavirus globally painted a “challenging picture of what could happen week to week, month to month”.
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