West-east movement of sheep sees huge surge in numbers

Figures obtained by The Weekly Times show the number of sheep heading east from Western Australia has jumped dramatically, in a sign of the fallout from tough trading conditions in the west.

Figures were on track to mirror the last big surge of sheep from WA to eastern states seen in 2019-20. Picture: Zoe Phillips

The number of sheep heading east from Western Australia has jumped more than 500 per cent, in a sign of the fallout from tough trading conditions in the west.

Figures obtained by The Weekly Times from the WA Department of Primary Industries and Regional Development show 673,571 sheep were sent east between January and May this year – compared with 120,700 sheep for the same period last year.

And DPIRD said the figures were on track to mirror the last big surge of sheep from WA to eastern states seen in 2019-20, when 1.4 million sheep made the journey east.

WA Farmers president John Hassell said the uncertainty around the live sheep trade, combined with a dry season, meant numbers were offloaded “wherever we could sell them”.

“The abattoirs were flat out, and there were backlogs at processors because we had issues with air freight,” Mr Hassell said.

“And I have absolutely no doubt that the movement of sheep from west to east has had an impact on the eastern price.”

As of Monday, the National Livestock Reporting Service had WA trade lamb prices at 544c/kg carcass weight compared to 709c/kg in Victoria, while WA mutton was priced at 216c/kg compared to Victoria at 419c/kg.

At its worst, WA mutton prices dipped as low as 49c/kg carcass weight late last year.

Mr Hassell said he sold 700 two-year-old sheep to processors this week and expected to get $40 “or $50 if I am lucky” for the line which had carcass weights over 20kg.

“When the buyers add on the cartage fee, it is still cheaper to buy here and it keeps a lid on prices over in the eastern states,” he said.

Wentworth, NSW, livestock producer Gus Whyte said he had heard some WA producers had sold their sheep “for next to nothing” to eastern buyers just to get them off their properties.

And he said processors had been buying sheep or lambs for about $40; even when a transport cost of $50 was added, it meant stock could be landed in eastern states for about $90.

“This does put a cap on what processors have to pay here (eastern states),” Mr Whyte said.

“Processors talk units and if that unit price landed from WA is cheaper than they can buy here, then happy days for them.”

Mr Whyte said the precedent of moving stock meant processors did not need to build new facilities to be able to take advantage of lower WA sheep prices.