Australia

Australia: Weekly cattle and sheep market wrap

With the uptick in supply, prices have eased since the end of last year but held relatively steady in 2023, according to Meat and Livestock Australia. The new Processor Cow Indicator (previously the Medium Cow) shows that, due to current pressure of higher prices on the processors, buyers met with solid demand last week. This caused a stabilisation to occur in the market.

Posted on Feb 14 ,00:15

Year-to-date, young lamb yardings have increased by 300% or 79,000 head. This indicates that lambing occurred later than usual last year, with the wetter winter conditions affecting joining in key sheep-producing areas. 

Widespread wet weather has also affected sales as producers hold back lambs whose weight gain performance and finishing are impacted by adverse weather conditions.
The new Heavy Lamb Indicator eased 15c week-on-week, with Wagga Wagga contributing 30%. The Central Victoria Livestock Exchange (CVLX) Ballarat commanded the highest premium this week at 825c, 29c/kg carcase weight or 4% above the national price. Saleyards that operated at significant discounts to the national price were Muchea, Hamilton, Warwick and SA Livestock Exchange. Quality lambs took out premium prices. Positively, with the increase in supply, buyers can be more selective about the lambs they purchase.

Due to the price for processor cattle easing and increased supply coming on the market, slaughter has strengthened significantly last week, reaching just under 109,000 head for the first time since 2020.

Similarly, sheep slaughter has increased 28% week-on-week and is 57% above 2022 levels. NSW alone accounted for 72,000 head of sheep slaughter last week, the highest volume since 2019. Mutton prices have eased since the record highs of June 2022 and now sit 190c/kg cwt below prices from this time last year. As favourable conditions continue and joining approaches, producers are now culling non-productive stock and there has been a continuous supply of older ewes entering the market, placing pricing pressure on the indicator.

Goat slaughter has also started the year strong, matching numbers from last year to sit at 30,796 head.

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