Sheep prices defy spring downturn as saleyards rake in millions
Sheep and lamb prices have defied the usual spring slump, with weekly saleyard transactions now worth tens of millions as farmers cash in on stellar lamb prices.
Tens of millions of dollars are changing hands in sheep saleyards on a weekly basis as prices withstand the normal spring downturn
Last week, Wagga Wagga’s sheep and lamb sale averaged $210 to earn $11.9m in a single day, while Hamilton’s 43,314 lambs last week averaged $236 to gross more than $10m.
And figures tracked by the Hamilton Regional Livestock Exchange show just how dramatic this year’s jump in returns has been.
Two years ago at the same sale, the yarding of 47,715 lambs averaged just $94 and grossed $4.49m when lamb values hit a two-decade low.
Even last year at Hamilton, more lambs (60,805) averaged $141 and grossed $8.6m at the same sale, well down on last week’s result.
Capital Livestock and Property agent James Pike said 60,000 lambs were expected at this week’s sale at Hamilton and it would be another big windfall for the farming community.
“We should have about 60,000 lambs for the next two to three weeks and it will be a huge cash injection into the farming community,” Mr Pike said.
“These prices have been really welcome given we’ve had a couple of tough years down here.”
Mr Pike said a noticeable trend had been the willingness of feedlotters to step into buying store lambs, which last year were bought by processors.
“We will see these lambs later on, at 27-28kg (carcass weight) and that will keep the returns coming,” he said.
Saleyards Australia executive officer Amy Perfrement said strengthening supply and improving demand were lifting yardings and supporting the “open, competitive selling environment that saleyards are recognised for”.
“High prices don’t directly increase saleyard profitability, as revenue is based on throughput rather than the value of stock sold,” Ms Perfrement said.
“That said, the stronger market is driving producer confidence and, in some cases, record yardings.”
Ms Perfrement said higher throughput could boost revenue, but it also brought increased operational demands, including additional staffing and resourcing to manage larger sales.
“The real benefit extends across the supply chain, producers, agents, transporters, and other service providers all gain from the increased activity, with saleyards playing a central role in supporting that momentum,” she said.
She said saleyards remained a vital part of Australia’s livestock marketing system.
“When prices rise strongly through the saleyards, it’s a clear indicator of firm buyer confidence and increasing demand across multiple segments of the supply chain,” Ms Perfrement said.
“Saleyards across the country are feeling confident and optimistic about the current period for the livestock sector particularly for sheep and lambs, but also for cattle.”
