WA lamb prices take a hit

A big gap is emerging between WA lamb prices and those in the eastern states, but why are the west’s rates copping such a hit?

Some lambs are trading at an almost 400c/kg discount in Western Australia compared to the eastern states, highlighting a great divide in lamb prices.

Restocker lamb prices dipped to just 421c/kg carcass weight in Western Australia last week, falling 18 per cent in the past month while mutton was trading at just 392c/kg.

At the same time, Victorian restocker lamb prices have been solid this month, closing on Monday at 809c/kg while mutton prices rose for the month to finish at 619c/kg.

Restocker lambs in Western Australia are selling at one of the biggest discounts compared to the national rates in the past three years according to the National Livestock Reporting Service.

Nutrien Western Australia northern area commercial sheep manager Damian Halls said rain in some areas had a two-fold effect on the lamb market.

It had encouraged some producers to clean out numbers to sow extra cropping paddocks, pushing lighter lambs into sales, as well as discouraging restocking.

But Covid labour shortages were the biggest factor pushing down lamb rates in the west.

“There has been a price correction in the past couple of weeks, but lamb yardings are down — we have only 2600 lambs at Muchea (yesterday) so it is hard to pick trends from such a small offering,” Mr Halls said.

“The lambs over here that are making $40-$50 are the tail of the tail but are being reported on, because there are so few lambs being sold and in general, restocker lambs are making 320-340c/kg liveweight.”

Meat and Livestock Australia market information manager Stephen Bignell said processors nationally were still working through the backlog of lambs from last year’s cohort “including in Western Australia”.

And while two million sheep crossed the Nullabor in 2020 from Western Australia to Victoria, Mr Bignell said this was only for specific types of stock.

“This trend does not extend to trade or Merino lambs to the same extent,” he said.

Victorian Farmers Federation livestock president Steven Harrison said he had heard of Gippsland producers who had sourced lambs from Western Australia earlier in the season, and the low prices in the west could encourage more to do so.

“The problem with WA is that it only has two major abattoirs,” Mr Harrison said.

“There have been Covid interruptions in WA and it’s delayed numbers being killed and there seems to be little interest in buying lambs there to finish when there already is a backlog.”