Lamb prices reach record highs
Poor weather conditions across many of Australia’s key sheep production areas have seen a significant upward revision of sheep slaughter forecasts for 2018 in Meat & Livestock Australia’s (MLA) Sheep Industry Projections September update.
That and high feed costs have caused an increase in lamb prices due to tight supply and a high demand for these products in the external markets.
Annual lamb slaughter is now projected to be 22.9 million head for 2018, up 2% on 2017, while sheep slaughter is forecast to reach 9.3 million head, up 23% on 2017 levels.
“Australian lamb prices have been rising strongly since April, breaking records as they smashed through the 700c and 800c/kg carcase weight marks for the first time,” explains MLA’s Market Intelligence Manager, Scott Tolmie.
Dry conditions had also placed downward pressure on carcase weights, with the national average lamb carcase weight for 2018 forecast to be 2% lower than 2017 and the average sheep carcase weight down 8%, at 23kg.
"Poor seasonal conditions and high feed costs have led to a waning supply of finished lambs as the year has progressed. This, combined with strong international demand, has resulted in fierce competition for a diminishing supply and driven up prices across the board.
The dry conditions drove increased lamb slaughter for the first half of the year, spiking in the second quarter of 2018 as conditions worsened and producers looked to destock. This peaked in June with the highest month of lamb slaughter on record. Lamb slaughter has fallen in recent months due to the delay in new season lambs entering the market", added Scott Tolmie.
As an effect of the increase in slaughtering, MLA analysis predicts a decrease of 5.5% to around 68 million head in national flock.
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