Poor seasonal conditions and weak wool prices have watered down competition on ram

The appetite for rams has waned this year as a tough season hits many sheep producing regions, following poor sheep and wool returns last financial year.

Tim Jorgensen at his Mertex Texels and White Suffolk Stud in Antwerp, Victoria. Picture: Nicole Cleary

Ram sellers are stealing themselves for a tougher selling season, despite a rising market for finished lambs.

Although the Eastern State’s Trade Lamb Indicator has steadied this week to sit at 821c/kg carcass weight, after falling off in the past month after a sharp rise, it remains a whopping 355c/kg above rates received at this time last year.

However the difficult dry season across much of Western Victoria and South Australia is expected to curb some clearance rates as many producers question their ability to hold and take on stock as the spring rain outlook is increasingly uncertain.

This uncertainty has been evident in Meat and Livestock Australia’s restocker lamb indicator which has dropped a swift 80c/kg in the past month to be tracking at 516c/kg at the beginning of this week.

Where the season is better in the north, the hope is for steadier demand.

In early sales held in the Mid North and Mallee of South Australia in recent weeks, clearances have been back.

Nutrien South Australia stud stock agents have reported that two major Poll Merino studs last week recorded offerings of 200-plus rams produced clearance rates of around 80 per cent.

Some smaller sales had results below that, with some selling around half of their offerings.

Looking ahead to Victorian ram sales Antwerp’s Tim Jorgensen, Mertex Texel and White Suffolks, said he was prepared for the finances of clients to be tighter, and as a result, sales “could see higher pass in rates”.

“It is just one of those years when things may be tighter for many people.”

For Peter Rogers, Mount Yulong Poll Merinos, Telangatuk East, a relentlessly dry season meant many of his clients were busy feeding sheep.

Combined with low wool prices, Mr Rogers said the stud’s focus on dual purpose Merinos, where the meat was a key focus “helps set us apart”.

“We use ASBVs and I think that is become even more important for the younger generations,” he said.