Sheep prices: Fletchers International buying pushes up mutton sales

Lamb and mutton prices may be jumping around, but they’re still more than 100c/kg higher than last year. See what’s causing the price rise.

Mutton prices have risen $15-$20, while trade lamb prices have fallen slightly. Picture: Chloe Smith

The return of a major NSW sheep processor into the buying fold has helped kick-up mutton prices.

But higher throughput of new-season lambs early this week has pushed down the trade lamb price.

Rodwells Bendigo livestock manager Nick Byrne said overall mutton was $15 to $20 dearer on Monday, but some sales were $30 dearer.

Mr Byrne said Fletchers International of Dubbo, NSW, was operating again at Bendigo prime sale on Monday and was helping to drive up the prices on the heavy sheep.

It comes after the processor had not been buying for a few weeks due to a preventative Covid-19 shutdown.

The eastern states mutton indicator closed on Monday at 634c/kg carcass weight, a slight rise of 2c/kg on last week, but 98c/kg higher than the same time last year.

Meat and Livestock Australia’s market information manager Stephen Bignell said international demand was still the key driver in the historically high mutton price.

Mr Bignell said mutton prices were down about 23c/kg on last month and this was due to “a seasonal flush” of sheep coming in as some producers were selling off more.

It’s reflected in the numbers, with 120,000 sheep slaughtered last week, compared to 80,000 the week prior.

Meanwhile, larger numbers of new-season lambs are being sold but most areas are reporting about a three-week delay in numbers compared to “normal”.

Wimmera livestock agent Wayne Driscoll said lighter suckers were coming in to sales and they were worried about the numbers during the next three weeks.

“It was such a tough start, we didn’t really get rain until the first week of June, so the lambs might catch up, but there are also lots of farmers talking about shearing lambs as they won’t fit in to the sucker market,” Mr Driscoll said.

Mr Byrne said new-season lambs were also delayed about three weeks at Bendigo.

“I think the gap will widen between the quality and the underweight lambs, but prices will remain very solid unless we get a hiccup in the weather,” Mr Byrne said.

On Monday the eastern states trade lamb indicator closed at 944c/kg carcass weight, down 8c/kg on last week, but 256c/kg higher than last year.

MLA’s Mr Bignell said last week 342,995 lambs were slaughtered nationally, down from 396,056 lambs last year.