Market fundamentals
National trade lamb prices declined by a further 8 per cent (pc) in July. At a state level there was some support in Tasmania, increasing 12pc driven by a low volume of lambs. While in other states prices were down between 3 and 14pc. The national trade lamb indicator remains 27pc lower year on year.
Lamb exports are up 7.3pc for the calendar year to date to 30 June. Like last month support from China has helped shift volumes higher. While increased exports to the Middle East were the key change for June, up a combined 45pc in what is a traditional market for lamb.
In other export news, Australia failed to wrap up negotiations for a free trade agreement with the European Union (EU) this week, however, both parties are optimistic a resolution could be achieved next month. The EU market presents a sizeable opportunity for Australian lamb and mutton exports with a large consumer base willing to pay for quality products.
National mutton prices declined by 11pc in July to $340 c/kg cwt, equating to 43pc lower year on year. China continues a rapid rise in mutton imports in 2023, with volume increasing by 93.6pc compared to 2022 year to date levels. However, China isn’t the only country taking advantage of a lower price point, solid increases have been recorded in Saudi Arabi up 53.3pc, Singapore up 28.6pc and the USA up 24pc.
From the field
South Australia
“Sheep numbers are certainly starting to decline, across both mutton and lamb".
"Mutton supply will begin to increase entering August and September as off-shears sheep become available.
“Kill space will be at a premium, and sucker crossbred lambs will start moving in mid-to-late August, with numbers increasing entering September and October.” - Damien Webb, Elders Livestock Manager, Northern South Australia.
Western Australia
“Western Australia is at best in a holding pattern at present. This largely due to the current uncertainty that surrounds our WA sheep live exports. However I remain ever the optimist; there is a glimmer of light at the end of the tunnel once things commence post 14 September, with promising signs of renewed entry into the Saudi market.
“Local lamb prices continue to ease at around $5/kg carcass weight (cwt). Mutton prices have also come off but there are signs that processors are gaining improved mutton enquiry at these lower price levels that currently sit around $3/kg cwt.”- Dean Hubbard, Elders Livestock Manager, Western Australia.
Tasmania
“June continued the previous trend of lamb prices with downward pressure by both processors and restockers alike. There were plenty of livestock available in the marketplace".
“The sheep job for both lamb and mutton has been of the biggest concern as our market in Tasmania relies directly on mainland competition, which has been waxing and waning without too much direction.
“With record June rainfalls covering wide areas of the state, it has certainly backed off demand for most lines of livestock.” - Gavin Coombe, Elders Livestock Manager, Tasmania.
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Market indicators
Note: States without sufficient data for the current month or without data for a specific stock category will not appear in the table.
Sources: Price data reproduced courtesy of Meat & Livestock Australia Limited.
The information contained in this article is given for the purpose of providing general information only, and while Elders has exercised reasonable care, skill and diligence in its preparation, many factors (including environmental and seasonal) can impact its accuracy and currency. Accordingly, the information should not be relied upon under any circumstances and Elders assumes no liability for any loss consequently suffered. If you would like to speak to someone for tailored advice relating to any of the matters referred to in this article, please contact Elders.