The 12 months the sheep industry never wanted to see

Analysts are warning it could be another tough 12 months-plus if you are selling sheep and lambs. Here’s why.

Sheep and lamb producers are being warned of a challenging 12 months ahead as the flush of spring lambs begins to hit the market.

While the very best lambs are still attracting close to 600c/kg, it’s only a small portion and bright spots are few and far between when it comes to prices.

And in a worrying sign, many lines of sheep and lambs failed to attract a bid on Auctionsplus last week, including several big drafts of 2023-drop Merino wethers from the Riverina.

Those no sales come as seasonal conditions vary widely across eastern Australia, with some areas going into spring poised for a bumper season while other areas are crying out for rain.

There could be tough times ahead for the sheep industry this spring.

Mecardo managing director Robert Herrmann said there was no quick fix to the challenges facing the lamb and sheep industry at the moment.

He said with the risk of El Nino looming, the logical decision was to sell this spring even if rates fell further.

“I would be a seller this spring and while we might not want to take the fall in prices, there is a cost in holding lambs on and the risks (to hold on) are not insignificant,” Mr Herrmann told the Australian Ag Podcast this week.

Mr Herrmann said lamb prices usually “rose on the stairs and came down on the escalator”.

“If I was a southern lamb producer, I would be watching very carefully what is happening in the north, because if there is a big sell-off in the future, it will have downward pressure on prices,” he said.

Producers are being advised to sell now rather than wait for better prices.

Elders Albury livestock agent Harry Cozens said Corowa’s lamb market on Monday saw some rewards for top lambs but the market was still over shadowed by last season’s drafts that were still putting pressure on numbers.

“At the moment, there are still a lot of old lambs in the system which are making up a lot of numbers and taking some work to liquidate and work our way through,” Mr Cozens said.

“Currently, we are seeing premiums for really good sucker lambs whether that is over the hooks or in the yards.

“Moving forward, the big thing is to work through old lambs, get as many out of the system and start churning into sucker lambs.”
Mr Cozens said lamb quality in many areas would be better than last spring, given the warmer winter.

“The early lambs I’ve seen are pretty good, they have had sun on their backs, and have done well because it has not been as wet as the past couple of years,” he said.

”We need to keep them good, keep them rolling and sell them when they are ready – there is not much else we can do.”