Australia

Australia: Weekly cattle and sheep market wrap

For the first full market week of 2023, slaughter volumes across most categories improved strongly. This indicates a large supply of slaughter-weight animals as producers rebuild their flocks and herds.

Posted on Jan 25 ,00:05

Week-on-week, cattle numbers have improved by 62%, or 31,300 head, indicating that stock held back due to weight gain performance are beginning to hit the market. Comparing year-on-year volumes, numbers are higher by 32%, or 19,500 head, indicating a strong start to 2023.

As forecast by the October 2022 Sheep Producer Intention Survey results, lamb slaughter volumes have begun in earnest. The survey projected that 46% of the 2022 lamb crop will be delivered to market in the first half of 2023.

Slaughter volumes rose 37%, or 102,470 head, week-on-week and were higher by 18% or 59,000 head compared to the corresponding week in 2022.

As a result of flock growth and ample supply, mutton slaughter rates have begun 2023 strongly.  Slaughter volumes week-on-week rose 36%, or 38,000 head. In comparison to the same time last year, numbers have increased by 60,000 head or 70%, indicative of how strong the current supply of stock is. The current supply is reflected in a reduction of processor demand for mutton and therefore the softer prices for mutton.

Mutton market

Several drivers are influencing the downturn seen in mutton prices:

• Due to weaning, lower quality and cull ewes are being made available to market. As such, prices are reflecting the lower demand due to the quality of animals on offer.
• Large supply to the processing facilities is reducing buyer demand for mutton across all selling platforms and therefore placing downward pressure on price.
• A drier summer affected finished quality of stock presented to market, wethers included.
• Saleyard supply of mutton increasing 21% or 4,700 head week-on-week.

At present, the National Mutton Indicator is operating at 307c – this is a decline of 266c/kg carcase weight or 46% year-on-year. It is important to remember that the indicator was receding from record highs in January 2022, therefore comparing year-on-year results does not accurately reflect average market performance. Compared to the five-year average of 540c, the current indicator is softer by 232c/kg cwt or 43%, a clear indication of the current market conditions.

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