Beyond the Saleyards: Mixed results for sheep and lamb processing

National sheep and lamb processing throughput has recorded mixed movement in July and August when compared to the same periods in the past five years.

Lamb processing volumes were 5 per cent below the five-year average national average while sheep throughput was 14 per cent higher.

Combined throughput sits at about one per cent lower than the long-term national average but was down 16 per cent on last year.

Cattle, meanwhile, is running at 29 per cent above the five-year July to August national benchmark and 10 per cent higher than 2024, with all States recording gains.

The contrasting trends raise an important question — is the strong cattle throughput being driven by the sharp rise in lamb prices, prompting shifts in producer and processor strategies?

Industry observers suggest processors may be recalibrating operations, aligning activity more closely with a tighter supply environment.

After record volumes in recent years, a more measured pace of processing appears to be emerging as the new norm.

Key questions now centre on whether this contraction will be enough to bring supply and demand back into equilibrium — and what it means for producer returns in the months ahead.

Despite the mixed sheep and lamb processing throughput, WA processor prices have remained relatively firm, with old-season trade lambs at $9.80/kg cwt, new season trade lambs at $10.20/kg cwt, airfreight lambs at $8.50/kg cwt, and light and heavy mutton at $6.50/kg cwt.

Outlook

Pricing for trade sheep and lamb currently experiencing price caution.

Breeding ewes interest to rise.

Agora’s Base+ forward pricing contracts continue to offer timely risk management options for producers for the summer period.

Indicative feeder lamb prices

Crossbred feeder lamb (35kg+): $4.60.

Merino feeder lamb (28kg): $4.20.

Merino lamb (36kg): $4.20.

Shedder lambs (34kg): $4.50.

For market insights, contact Agora Livestock on 1300 812 345 or call Dean Hubbard on 0428 697 880.

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