After tracking near even with 2017 for the first three months of the year, a long dry winter, expensive feed and scarce grass on the ground had farmers de-stocking their paddocks to the abattoir.
Lamb slaughter peaked in June with the highest month of lamb slaughter on record, according to MLA’s sheep industry projections update in September.
Over the year to July, lamb slaughter was nine per cent higher than last year at 13.8 million head.
But a delay in new season lambs coming through saw slaughter numbers decline through August with reports of heavy and slaughter-ready categories hard to come by.
In August, national sheep slaughter was up 57pc year-on-year, to 1.05 million head.
Victoria made the largest contribution in terms of volume, with the state recording its highest monthly sheep slaughter since December 1993 at 470,000 head. Both lamb and sheep slaughter levels are predicted to finish well above 2017 levels.
Cattle followed a similar trend with the national adult cattle slaughter totalling 743,000 for the month of August, (latest available ABS data) up 10pc for the same time last year and year-to-date cattle slaughter also sat 10pc above 2017 levels, with the increase driven entirely by cows and heifers.
Dry conditions have driven winter female slaughter to levels not seen since the drought years of 2013–15. June to August national female slaughter was up 23pc on 2017 figures, at over 1.1 million head.
In early October forward price contracts for slaughter lambs gave the market some much-needed direction for next year and boosted confidence to lift values across crossbred and Merino store lambs.
Thomas Foods International and Australian Lamb Company released forward price offers for the supply of lambs this Christmas and into next year offering producers the chance to lock-in at a guaranteed profit margin.
The contracts on offer are an indication of the looming shortage of good slaughter lambs and prices in the auction system will go higher.