Sheep industry weighs in on meteoric mutton prices

Mutton prices have increased by $100, hitting up to 800c/kg carcass weight. Will it be an “aberration” or a new trend?

A meteoric rise of $100 and prices of up to 800c/kg carcass weight for mutton last week have been judged an aberration rather than a new trend for sheep.

The national mutton indictor hit a high of 551c/kg carcass weight in intense competition at Wagga Wagga and Griffith, in NSW, last week.

And while most thought prices would be lower early this week, the mutton indicator hit a new peak of 552c/kg on Tuesday morning – up 82c/kg in a week – after medium and heavy weight sheep were $15 dearer at Dubbo, NSW, on Monday.

Nigel Starick and Graeme Broad at the Bendigo saleyards.

Elders Bendigo manager Nigel Starick said Monday’s sale at Bendigo had prices “nowhere near the gravity” of last week, with prices at about 540-600c/kg.

He said they had a significant yarding with a rise of about 8000 sheep on the previous week’s numbers, while Dubbo had 10,000 more than usual, and Corowa 3700 more.

“That’s over 20,000 more sheep just sold on a Monday, it is interesting prices strengthened,” Mr Starick said.

Mr Starick said Australia’s varied export options for mutton also helped buoy prices.

He said the upcoming shorter weeks due to Easter and Anzac Day would influence the mutton market, alongside autumn break movement.

“The job is still good, to see sheep prices north of $5/kg and entering $6/kg means we’re seeing prices close to lamb.”

Meat and Livestock Australia analyst Emily Tan said processors looking to buy mutton to fill contracts were a main contributor to the price jump.

“It’s the first time we’ve ever seen the mutton indicator move by more than 100c/kg,” she said.

Ms Tan said it was unlikely the prices would remain high.

Stephen Collins, from Bridgewater, sold 35 second-cross lambs for $266, and 55 Merino lambs for $236 at Bendigo on Monday.

“As far as the mutton job goes, we haven’t sold mutton for quite a while. If they stay high there’ll be a lot of people cashing in while it’s dry,” he said.

Nutrien livestock operations agent Ron Rutledge said price rises of $100 last week were “an aberration”, not a trend.

“If it was a trend, we would have seen prices of up to $300 at Bendigo this week and we didn’t,” Mr Rutledge said.

He said prices of about 500c/kg carcass weight for mutton were still a good result.

“No one wants to see these massive swings of up to $100 from week to week,” he said.

To date this year, China has been Australia’s biggest market for mutton, up 15 per cent year-on-year to 21,788 tonnes. Malaysia and Saudi Arabia are the next biggest destinations for mutton.