All abattoirs, major buyers tussle for heavy lambs as prices skyrocket

Sheep graziers selling heavy lambs are relishing strong prices this week, as “every single buyer” chases quality. But agents believe numbers will soon diminish.

Heavy lambs are proving the flavour of the month, with buyers digging deep to secure adequate supplies as the industry banks on a market shortage in finished lambs.

Meat and Livestock Australia’s national heavy lamb indicator earlier this week hit 959c/kg carcass weight, up 84c/kg from the same time last month, while the trade lamb indicator has made 906c/kg, up 70c/kg from last month.

Bendigo averaged a whopping 1006c/kg for heavy on Monday. It follows strong sales in NSW in the past week, with lambs averaging 950c/kg at Wagga Wagga, 1060c/kg at Dubbo and 1018c/kg at Tamworth.

Elders Bendigo livestock agent Jett Nicholas and farmer Ben McCooke at Axedale. Picture: Zoe Phillips

Elders Bendigo livestock manager Nigel Starick said a lack of quality and fewer shipments to Tasmania due to weather had largely contributed to the stellar prices. But agents expected a shortage of heavy lambs to eventually hit the market.

He said a lack of quality feed and the season’s “unknown”, after a late autumn break, would likely cause a market shortage of finished lambs.

“The conversation around is whether it’s sustainable going forward. We all think the numbers will run out,” he said.

The Bendigo yarding was 3000-4000 less than the previous week, but prices topped at $349 and heavy lambs made 920-1020c/kg.

Mr Starick said it had been the best price per kilo he’d witnessed in his 25-year career, but it was yet to beat price per head records.

NEWS: Farmer Ben McCooke at Axedale with his Kelpie Peggy. Picture: Zoe Phillips

Axedale grazier Ben McCooke sold lambs direct on Friday, making between 800-900c/kg.

“(The price) is what it needs to be. Because we purchase our lambs out of the north, your margins have to be pretty right,” he said.

“It’s buoyant, but it’ll be all weather driven from now on. There’s definitely a shortage of lambs, there’ll have to be a shortage of finished lambs going forward.”

Meanwhile, new Australian Bureau of Statistics data showed sheep and lamb gross value rose by 21.4 per cent this year to 1.6 billion, as lamb slaughter steamed ahead with an 8.7 per cent increase to nearly 7 million head.

Ben McCooke’s Kelpie Peggy working at Axedale. Picture: Zoe Phillips

Meat and Livestock Australia senior market analyst Erin Lukey said the combined sheep and lamb gross value, $1.6bn, was the highest on record for at least 10 years.

“It’s really strong... But the total value doesn’t reflect the position individual producers are in if they have stock,” she said.

Ms Lukey said producers currently made about $160 a head, with the previous record at $195 in June 2020. She expected supply to contract.

“That dry in the south is catching up to producers, if there’s less ewes on the ground then there’s less lambs around coming onto the market later this year.”