Eastern states buyers chasing cheap WA sheep

Some Victorian and NSW buyers have started sourcing sheep from WA as they try to capitalise on prices as low as $40 for Merino ewes.

Eastern states buyers have started sourcing sheep from Western Australia.

And Western Australian producers are pinning hopes on more buying activity.

It is believed the cartage cost is between $8-$9.50 a kilometre, depending on fuel prices on the trip over, and that a $2 a head spelling fee would also need to be added to the cost.

But it’s not enough to deter potential buyers and the The Weekly Times understands about 3000 are headed to Dubbo, NSW, while others will make their way into the Riverina and Victoria within the next week or so.

Elders Western Australia state livestock and wool manager Dean Hubbard said eastern states buyers had already headed across the Nullarbor to buy young ewes.

“In the past three to four weeks, the phone traffic has definitely increased,” Mr Hubbard said.

“The movement of sheep from west to east has started to happen.”

While there is no talk that it will mimic the two million that were sourced by eastern states buyers in 2019, activity has lifted.

Mr Hubbard said those who were looking to get numbers had probably missed out on young ewes, but the flat mutton market in Western Australia meant older, sound mouth ewes could still be available.

And while the spot buying by eastern states buyers has been welcomed, WA Farmers president and Pingelly mixed farmer John Hassell said there was still a sense of despondency in the sheep industry in his state.

He said a combination of factors, which included the planned end of the live sheep trad, had created a tough trading environment for the industry.

Dry conditions in parts of Western Australian had also not helped, with producers quitting numbers early and had caused a backlog at abattoirs.

He said a producer last week bought a small run of 120 lambs for just $2.30 “per sheep not per kilogram”.

“There is a lot of despondency around and a sense of people taking what they can get,” Mr Hassell said.

“That person who sold those lambs would have paid $5 cartage and $5 yard fees, and ended up with a bill.”

He said some eastern states buyers had made offers for stock, but some had been as low as $40 for Merino ewes.

Meanwhile, the stark contrast in processor values in the west and eastern states has continued.

Early this week, the West Australian mutton indicator closed at just 59c/kg carcass weight, compared to 148c/kg in Victoria and the same in NSW.

Restocker lamb interest was also low in Western Australia, with that indicator closing the week at just 206c/kg carcass weight, compared to 516c/kg in Victoria and 479c/kg in NSW.