Scramble to find lambs amid estimates of 2 million less in key production area

Trade lambs averaged more than 900c/kg at Wagga Wagga, as one key production area says it will have two million less lambs this year.

An estimate of two million fewer lambs from one of Australia’s key production areas could be fuelling prices, which pushed above 900c/kg carcass weight this week.

Despite a bigger yarding at the major centre of Wagga Wagga on Thursday, which included 30,400 suckers, prices were up with the National Livestock Reporting Service quoting many lambs broke through the 900c/kg mark.

Trade lambs averaged 860c/kg carcass weight but the sweet spot was for 24-26 kilogram lambs, which averaged 906c/kg.

Trade lambs 24-26kg carcass weigh averaged more than 900c/kg carcass weight at Wagga Wagga this week.

NLRS reporter Leann Dax said even without supermarket competition, there was still plenty of bidding for lambs.

“The market was very strong, especially for heavy export classes,” Ms Dax said.

“The competition among export buyers was fierce, with all companies actively seeking lambs with weight, which contributed to the strong market.”

Price are still well above this time last year, with the national trade lamb indicator sitting at 830c/kg carcass weight, 60c/kg higher than a month ago and 346c/kg above this time last year.

The comparisons are even more dramatic for heavy lambs, with that indicator currently at 860c/kg carcass weight, a lift of 86c/kg in the past four weeks and 354c/kg better than 12 months ago.

It comes as talk emerges that a key production area will not supply its usual numbers this year.

Lamb numbers could be down by 20 per cent in one of Australia’s key lamb production areas.

Western District lamb producer Tim Leeming said the area known as the Green Triangle (south east South Australia and the Western District) usually produced about 10 million lambs, but estimated this year would be down by 20 per cent.

“I talk to a fair few people and ran field days where we had 300 producers and I would say the number of lambs would be back by two million easily,” Mr Leeming said.

And with the strength of prices through spring, he said producers would be reluctant to sell lighter lambs and instead would feed them, which flowed on to decreased yardings.

“When you can get a contract price for 830c/kg carcass weight in December, the incentive is there to feed lambs to get them to the higher weights, knowing what you will get,” Mr Leeming said.

“I know of six people who have put in feeding systems so they can finish lambs and have more control over when they sell after last season (and the low spring prices.”