Why the best rates are being paid for heavy lambs this summer

A surge in heavy lamb prices is leading to big dividends for producers with weighty stock on hand.

A shortage of finished heavy lambs has delivered a premium for heavy weights this summer.

The eastern states seven-day indicator for heavy lambs closed on Monday at 826c/kg, just 48c/kg carcass weight shy of last year’s rate.

This compares to all other lamb and sheep categories which are 85-275c/kg behind last year’s carcass prices with restocker lambs showing the biggest falls year on year.

Episode 3 director Matt Dalgleish said heavy lambs ”had been in short supply in the first few opening sales for 2023, particularly in the bigger saleyards of Wagga Wagga, Ballarat and Bendigo”.

“The week ending January 20 saw the price spread for east coast heavy lambs to the eastern states trade lamb indicator lift toward a premium of nearly 10 per cent,” Mr Dalgleish said.

“Normally, at this time in the season, it would sit between a discount of 1 per cent to a premium of 3 per cent, so the price action since the start of 2023 confirms the reports of a short supply of heavy lambs.”

Buyers are paying more for heavy lambs this year on a c/kg basis, rewarding growers who have them to sell.

At Bendigo on Monday, the best heavy lambs sold to $275 for those over 30 kilograms carcass weight, or about 840c/kg, according to the National Livestock Reporting Service.

Victorian Farmers Federation livestock president and lamb producer Scott Young said the lack of supply and consistent demand for heavy lambs had driven the rates up.

“We had such a shocking spring in Victoria, and it was wet and cold, and it was hard to get lambs up to weight,” Mr Young said. “There were also more lambs shorn and held over from normal, but I can’t see a big surge of heavy lambs coming onto the market.

“It is not a simple process to get lambs up to those heavier weights (26kg carcass weight and more) and I am not sure there will be thousands of those ready at the same time this autumn.”

McKean McGregor director Glenn Rea said strong heavy lamb prices were a direct result of a lack of supply.

Difficulty finishing lambs to heavy weights has driven up this sector of the market over summer.

“Normally, the sweet spot for cents a kilogram is the trade to heavy trade, but this year it has been the heaviest lambs getting the highest prices, so a real win for those who could get them up to those weights,” Mr Rea said.

“Heavy lambs are making north of (higher than) $8/kg, and that’s pretty good money.

“My dad always said if you can make more than $200 for a lamb, you are doing alright, and I still think that it’s very good money.”