Mutton, sheep prices are up

Agents are confident the sheep market is finding a new equilibrium, with mutton prices spiking by 165c/kg this year.

Sheep prices have risen more than 110 per cent since the start of January.

The national mutton indicator closed at 286.77c/kg carcass weight on Monday, up 7c/kg in the past week and 165c/kg – or 111 per cent – in the past few weeks. It was trading at 135.4c/kg at the close of markets before Christmas.

While the lamb market has been erratic in the past few weeks, but has also risen significantly, the sheep market has been the most consistent performer with prices continuing to slowly creep up.

According to the National Livestock Reporting Service at the Bendigo prime sheep sale on Monday prices started off flat but improved as the sale went on, with most sheep selling at $60 to $100, or 280c/kg to 330c/kg carcass weight.

Elders Bendigo livestock manager Nigel Starick said there wasn’t a lot of change in prices in the past week and he called the market “fully firm” across the board.

“I think we’ve found a happy medium for producers, buyers and processors,” Mr Starick said.

“Most sheep are selling at about 300c/kg, but there are still plenty at 240-260c/kg.”
Mr Starick said at the Deniliquin store sheep sale last week, there was “huge demand” for store wether lambs compared to ewes as a “low care, park in a paddock and forget” option.

Selling action at the Deniliquin store sheep sale.

Meat and Livestock Australia market information manager Stephen Bignell said mutton prices had experienced a huge uplift and opened at the highest level since late July 2023.

“Prices are closing in on 300c/kg and that is alongside a huge headcount (large volume). We think the market is finding a new equilibrium, as supply is up, but so are prices,” Mr Bignell said.

“Interestingly, supply is still coming in and people seem to have excess stock to sell to take advantage of the higher prices.”

More confidence due to rain, a strong export market outlook, solid wool prices and a cheaper alternative to lamb prices are the main reasons given for the increase in mutton prices.

“The wool price is back above where it was in May last year, so that always helps the mutton price,” Mr Bignell said.

Meanwhile, 2023 was a record year for mutton exports with the largest ever volume at 209,580 tonnes exported.

China was the largest market, with mutton exports rising 70 per cent to 97,481 tonnes for the year.