What to expect when selling prime sheep this spring

Price hits are reflecting bigger numbers of mutton sheep coming on to the market as producers get less for ewes and wethers.

Mutton prices are expected to be volatile through spring with producers not knowing what to expect from week to week.

The eastern states mutton indicator closed on Monday at 515c/kg but is jumping around as processors juggle whether to kill mutton or more suckers as stock supplies surge.

Last week, national mutton slaughter numbers reached their highest level since February last year, but prices are holding at about five-year average levels.

Meat and Livestock Australia senior market information analyst Ripley Atkinson said the national mutton indicator was 6 per cent, or 32c/kg, lower than the five-year average of 547c/kg carcass weight.

Mutton prices are expected to rise and fall through spring as processors juggle big numbers of lambs.

Victorian sales are slightly better, just 3 per cent lower than the five-year average of 564c/kg and the NSW indicator is 7 per cent, or 37c/kg, down on the average of 561c/kg.

“Transport, logistics, flooding and volatile weather events are dictating the delivery and supply terms of mutton yardings at present,” Mr Atkinson said.

“At the same time, processors are prioritising a large volume of new season lambs in the kill floor space and that has subdued demand for mutton and therefore buyer demand at the saleyards.”

Mr Atkinson said while some abattoirs had been opting to kill suckers, the combined national sheep and lamb slaughter volumes last week were the highest they had been since the start of last year.

“This demonstrates processors’ ability to deal with increased volumes of lambs while also coping with increased numbers of mutton – showing current processor capacity for small stock is robust,” he said.

Mutton prices are sitting around five-year average levels.

TB White and Sons principal Leo White said mutton prices were dictated by numbers, but the overall expectation was values were down by about $100 on last year.

“We might see really top sheep make $200 but it takes a hell of a good ewe to make $160-$190 now,” Mr White said.

“We won’t get back to the price levels we saw last year, and as the numbers build up, they (processors) give you the price.”

Meanwhile mutton exports continued to lift in the latest trade figures.

Episode 3 director Matt Dalgleish said mutton exports increased in September to 12,622 tonnes but were down on the long-term trend.

“After five months with export flows above the five-year average trend, the lacklustre trading in September saw monthly volumes slip under the average pattern to sit 15 per cent below the average trend,” Mr Dalgleish said.

He said China remained Australia’s biggest mutton customer this year, accounting for 37.1 per cent of exports, followed by Malaysia with 14.4 per cent and the US with 9.6 per cent.