SUSTAINED slaughter levels despite decreased production have tipped the sheep and lamb market this week, highlighting “dangerously scarce” supply shortages.
Numbers were down nearly 30,000 at market centres in NSW, Victoria, and South Australia this week, attributed to a supply deficiency following substantial offloading of stock in spring and summer.
The dramatic yarding decline of 8000 at Forbes, helped spur prices which recorded the national price peak of $225 for the week, with prices from 579c to 613c/kg carcase weight.
Kevin Miller, Whitty, Lennon & Co director Luke Whitty said the battle for supply had begun.
“The numbers are running out,” Mr Whitty said.
“We still yarded (29,000 head) so there is some supply although meat companies are running a bit short at the moment so that’s why we have seen a surge in the market this week.
“Whether this is sustainable, time will tell by the season and supply in the next six to eight weeks.”
TB White & Sons director Gerard White, Ballarat, Vic, said the summer offload of stock was driven by drought conditions in the past 12 months and a water supply shortage.
“They’ve offloaded huge numbers early – as a result we are seeing the mutton supply getting dangerously scarce,” Mr White said.
Processors battle to secure supply had the expectant result on Ballarat’s sale on Tuesday, when prices rose on average $10 to $15 a head on last week to $221/head high.
The top price paid at Ballarat was by meat processor JBS Australia for 194 first cross lambs, average 40 kilograms, offered by KP Maher & Sons, Springbank.The lambs were purchased in December, av 22kg, at $110, and supplement fed on Lucerne pasture. A comparable draft of their paddock mates sold last week to $210.
“It’s not fluke, it takes a lot of effort and expertise to get these lambs to where they are (condition wise),” Mr White said.
“To go through the seasons we have experienced - which was absolutely a drought - and for the vendors to get the lambs up the way they have is an absolute credit.”
Eastern States Trade Lamb Indicator closed the week up 8c, to 567c/kg, while yarding was down by an estimated 25pc.
Heavy lambs rose 9c, to 575c/kg, and Mutton a further 1c to 366c/kg.
The combined yarding for lamb and sheep on the East coast last week of 243,379 head was 21.1pc above the five-year average for this time of year, according to Mecardo.
Despite a national production estimated shortfall of 3pc, the eastern states sheep and lamb slaughter has sustained year-ago levels at 84,022 (+13pc) and 361,789 (+.5pc) respectively.
Mr White said a substantial number of lambs had been sent over-the-hooks in the past six weeks, as the season closed in, to focus on maintaining condition of breeding ewes.
“Numbers from here on will decline,” he said.
“Last week the rise in the market flushed out some numbers but we’ll see (supply) level right back.”