Lamb prices improve as slaughter rises

Victoria’s lamb slaughter has hit its highest level in more than two years, helping spring market prices. See why numbers are on the up.

Greater kill capacity is helping support the spring lamb market, with the industry both surprised and relieved by the trend of dearer prices as more suckers are sold.

Victoria’s lamb slaughter hit a record weekly tally of 244,265 head in the second week of October (the latest figures available), for a production level nearly 40 per cent higher than the same time last year, according to data from the National Livestock Reporting Service.

It comes as the lamb market defies fears the spring flush would trigger a price collapse, with the saleyard indicator for heavy lambs climbing back above 500c/kg carcass weight in the past 10 days.

Export weight sucker lambs hit a new seasonal top of $181 at Bendigo on Monday in a substantially bigger yarding of 25,000.

Bendigo Stock Agents Association president Chris Nevins said the current market was breaking a number of rules.

“Rising lamb numbers and rising prices is not something you usually see – it has got to be linked to kill capacity as nearly all the buyers are in having a go at the moment,” Mr Nevins said.

To put Victoria’s latest slaughter of 244,265 lambs into perspective, the state didn’t register a kill above 200,000 during any week of 2022 and 2021.

Chris Nevins, FP Nevins and Co with sucker lambs.

The Weekly Times was told the reopening of abattoir sites such as Cobram by JBS Australia and the Echuca Meatworks had helped improve small stock capacity in Victoria. The Cobram abattoir is reportedly processing around 3500 head a day, up from its initial opening of 1000 or less when new staff were being trained.

Although much of the increase in volume has reportedly come from maximised lamb throughput at some of the state’s biggest abattoirs, including the Australian Lamb Company at Colac.

ALC livestock manager Angus Lloyd said bigger numbers of young lambs meant processing efficiencies could be achieved by faster chain speeds. The company is operating its regular two kill shifts a day as well as a shorter processing run on a Saturday morning.

“We are getting access to better types of young lambs now, compared to old-season stock which often had problems of seed contamination, so we are maximising our throughput each day,” Mr Lloyd said.

It has also been suggested cheaper meat prices at supermarkets and butchers is helping improve sales, resulting in more demand down the supply chain.

Seasonal factors are also coming into play, with a shortage of heavy lambs being reported at saleyards and export demand has lead prices higher.

Heavy lambs weighing above 30kg have sold to the best demand at prime markets in the past week, as shown by a 40c/kg rise for these in the auction system. The latest rolling price average for 5700 extra heavy lambs sold at saleyards was $166 or 504c/kg.

Trade lambs, which are more plentiful in numbers, have started the week firm at 494c/kg.