Beyond the Saleyards: WA Sheep recover, cattle gap narrows

Western Australia’s livestock pricing relationship with the Eastern States is now telling two distinct stories.

There is a clear recovery in sheep and lamb, and a narrowing but still persistent structural discount in cattle.

Three years ago, WA sheep markets sent a strong liquidation signal.

During the December to February quarter of 2023-24, WA mutton traded at roughly 32 per cent of the national indicator, accelerating ewe liquidation and rapid flock contraction.

Trade lambs were also discounted at around 79-80 per cent of national levels.

Live export uncertainty and pricing weakness compounded the pressure, influencing many producers’ decisions to exit or reduce exposure.

In 2026 year-to-date, the pricing relationship has materially tightened.

WA mutton is now trading at approximately 88-89 per cent of national benchmarks, while trade lamb sits around 97-98 per cent.

The east–west premium has largely disappeared in lamb and significantly compressed in mutton.

That reset materially shifts the economics, retention becomes viable, ewe values stabilise and disciplined rebuilding becomes commercially rational.

Cattle present a slower recovery and remain a WA-specific discount story.

Processing cow prices have lifted from roughly two-thirds of national pricing in 2024 to around 82 per cent in 2026 yeat-to-date, but the gap persists.

Importantly, Eastern States remains broadly aligned with national benchmarks, highlighting that the discount is largely isolated to WA’s competitive environment.

Geographic separation, limited processor depth and reliance on alternative demand channels shape this dynamic.

Live export remains materially important to WA cattle pricing tension and competitive balance.

The direction is positive.

Sustained improvement, however, will depend on strengthened competition, disciplined production decisions and forward market frameworks that provide producers with confidence beyond the spot market.