Prices diving in a massive hit for livestock producers

Livestock’s stellar run could be over as prices fall across almost every category. See what’s happened this week.

Millions of dollars are being wiped off livestock producers’ incomes as prime and store markets start to buckle.

Losses of up to $70 were seen for mutton at the Bendigo sheep market on Monday while cattle prices were up to 50c/kg at early sales this week.

And even store markets are beginning to feel the pinch despite enormous spring rain, with the Yea weaner sale up to $400 cheaper than a year ago.

The speed of the fall in prices and the scale of the losses is spooking some producers who are rushing to try to lock in sales to abattoirs before rates slide further.

McKean McGregor principal Glenn Rea from Bendigo said prices at Bendigo’s sheep market on Monday were the biggest check he had seen in 15 years with some mutton quoted at just 100c/kg carcass weight by the National Livestock Reporting Service.

“We have avoided spring price falls in the past three years but we saw them this week,” Mr Rea said.

“It doesn’t seem to be just a (increased) numbers thing and it seems to be there is reluctance from export markets over price, for both sheep and cattle.

“I would say the market I saw this week was the cheapest I have seen for mutton in 15 years.”

Mr Rea said high quality lambs were still making more than $200 and “it was greedy to think they should make more” in the current trading environment.

Surging numbers and falling prices will add to uncertainty for producers deciding whether to sell or not.

Meat and Livestock Australia senior analyst Ripley Atkinson said analysis showed there were “still plenty of stock about”.

“We expect high lamb numbers will hang over and be sold from January to June next year,” Mr Atkinson said.

“We always knew that the flock rebuild would mean numbers would turn around, so this should not come as a surprise.”

In the beef market, the benchmark Eastern Young Cattle Indicator has fallen 59c/kg in a week to close at 918c/kg on Monday. It is tracking 182c/kg lower than this time last year.

The price fall is across the board with all beef indicators diving in early trading this week, and have dropped by as much as 62c/kg over the past month.