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National lamb record soars to 951¢/kg cwt

Headshot of Bob Garnant
Bob GarnantCountryman
Record lamb prices are predicted to remain stable.
Camera IconRecord lamb prices are predicted to remain stable. Credit: Bob Garnant/Countryman, Bob Garnant

Australian lamb prices have hit a new record high with the National Trade Lamb Indicator reaching 951¢/kg cwt on August 23.

The eye watering total is up 33 per cent compared to this time last year with new season lamb numbers lifting in saleyards nationwide.

Prices are up 661¢/kg cwt since the National Trade Lamb Indicator first passed the 313¢/kg cwt level in 2002.

A new national record price was set for new-season lambs sold for $331.20/head, of 1033¢/kg, on August 19 in Wagga Wagga, NSW — $10 above the previous $320 set three years ago.

Meanwhile a new Australian record price for commercial ewes reached $1210/head on August 24 for a draft of 26 Australian White Tattykeel certified commercial ewes, pregnant with twins and bred and sold by the McKelvie family, who farm in NSW.

Meat and Livestock Australia market information manager Steve Bignell said year-to-date lamb slaughter in the Eastern States was 5 per cent stronger than last year’s levels, at 568,000 head.

“Compared to the five-year average, year-to-date volumes are 6 per cent, or 591,000 head, softer, demonstrating the growth the flock has made in rebuilding its significantly liquidated numbers after the drought.” he said.

“With slaughter operating above 2020 levels, these figures demonstrate that 2021 lamb supply is performing above expectations.”

Mr Bignell said WA trade lamb producers were receiving up to 750¢/kg cwt at Katanning Regional Saleyards and up to 739¢/kg cwt at the Muchea Livestock Centre, up 113¢ and 132¢/kg cwt respectively on same time last year.

“Katanning reached 836¢/kg cwt on August 2,” he said.

“The WA and Eastern States price difference comes from the latter having more competition from a greater number of processors and there are more crossbreds in the marketplace.

“In NSW alone, saleyard lamb supply was operating 20 per cent stronger than 2020 year-to-date levels, the equivalent of 629,000 head.

“Compared to the five-year average, year-to-date yarding volumes are also performing slightly better.”

Mr Bignell said this showed that the state’s flock was maturing, and growth through slaughter and yarding supply was evident this year

“These figures demonstrate to industry that the size of the lamb cohort is larger than initially expected and there is significantly more supply being delivered through improved marking rates and increased numbers of joined females,” he said.

“This is a result of some regions experiencing an excellent season and producer intentions to rebuild numbers, with over 40 per cent of NSW producers expecting to increase flock numbers within the next four months.

“Historically strong supply is also doing little to deter processors.”

Mr Bignell said young lamb supply was ramping up across the NSW saleyards and processors continued to dominate purchasing at the rail, supported by a soft Australian dollar and surging international demand.

Mr Bignell said as the flush of new season lambs begins, high quality and well-bred lambs will demand attention, and with fresh lambs presenting in larger numbers, processor demand has remained strong to meet the growth of the US market and China’s continued presence.

In WA, Elders WA commercial sheep manager Mike Curnick said there was good demand for store lambs.

“A lot of lambs are getting early weight gains with the exceptional start to the season with plenty of feed around,” he said.

“Traditionally the Eastern States producers offer much heavier trade lambs, up to 30kg dressed weight.”

Mr Curnick said WA producers were reaping up to 360¢/kg for 32 to 40kg liveweight store lambs, up from 310¢ to 320¢ last year and around 800¢ cwt for slaughter lambs

“Producers are receiving up to 800¢/kg cwt for slaughter lambs,” he said.

“WA lambs are producing good weights, and are in good health.

“I expect there will be a slight price correction as the spring flush comes on, but lamb prices should be very stable throughout the summer.”

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