What prime lamb breeders will need to pay for first-cross ewes

The southern circuit of first-cross ewe sales is about to kick off. See how values are expected to settle.

First-cross ewe breeders may have a bitter pill to swallow this spring as poor cash-in values for old ewes and a dip in lamb values flow through.

The southern first-cross ewe selling circuit kicks off this Friday at Corowa, NSW, with 11,000 sheep booked to sell.

Other major markets – at Bendigo and Naracoorte, South Australia – will hold their annual fixtures in November.

And while the trade-in value for old sheep has dived – the national mutton indicator closed at 106c/kg early this week dropping 52c/kg in a week – agents are warning producers not to become fixated on this.

Auctioneers take bids at the Corowa first cross sale last year – prices are expected to be back this Friday when the offering hits the market.

Corowa Agents Association president Steve Grantham said vendors were pinning their hopes on repeat buyers and the fact that all the offering was being sold by those who bred them.

“It’s hard to know where values would settle but you would think a lot of first-cross ewes will settle in the $130-$200 range,” Mr Grantham said.

“I don’t think anyone is out to buy any extra ewes but we have vendors who are prepared to meet the market as they have their programs to run on with.”

Bendigo will offer about 35,000 first-cross ewes and ewe lambs on November 10, with final figures to be worked out at a meeting this Friday.

McKean McGregor livestock manager Alex Collins thought the best first-cross ewes at this sale would make up to $240.

And while ewe lambs were being booked into the sale now, he said some may hold back numbers and punt on a lift in heavy lamb values around Christmas and in January.

Mr Collins said they were advising buyers to think about the changeover cost, and to upgrade flocks to a younger age profile.

“Yes, mutton prices are back but the changeover to a younger flock now is much less than it has been,” he said

Buyers are being encouraged to think to upgrade to younger ewes at cheaper prices.

Further west, Naracoorte will hold its two annual first-cross sales next month, with 1½-year olds on November 9 and first-cross ewe lambs on November 16.

PPHS director Richard Harvie said he hoped the best ewes at these sales would break through $200 and could even make up to $250 but a large percentage would make $130-$200 “and anything not up to scratch won’t make $100”.

Naracoorte agents expect to yard close to 50,000 across the two days.

Mr Harvie said while overall values were down, and mutton cash in rates were much less, the changeover cost from an old ewe to a young one was the best it had been in 10 years.

“If it does come in dry, surely you would rather feed a young ewe than an old one,” Mr Harvie said.