Mutton’s comeback

Spurred on by rain last week and more to come this week for some regions, The Land’s mutton indicator hit 350 cents a kilogram (carcase weight) on Tuesday.

This was about 10c/kg higher than a fortnight ago.

For the past few months national mutton prices have followed a volatile trend by peaking at 395c/kg in June before falling to a low of about 330c/kg at the start of this month.

At the close of markets last week the National Livestock Reporting Service National Mutton Indicator finished on 348c/kg.

That’s about 131c/kg higher than at the same time last year.

Agents have already reported producers have seized the opportunity to cash in on the better than average prices as the market lifts.

Kevin Miller Whitty Lennon and Company livestock agent, Luke Whitty, Forbes, said the market had held on well throughout the colder months.

“Traditionally, it’s pretty good through winter, about a month ago sheep peaked at 400c/kg and lost ground a few weeks ago,” Mr Whitty said.

“In the past 10 days we saw some movement to more than 300c/kg, there’s also been competition from export companies in that time.”

Mr Whitty said supply could drop off in the coming months, as demand decreased after the high during winter.

“It’s controlled by lucrative export markets and countries in the Middle East, there’s competition from different countries for the export market.”

Mutton shipments during July to the Middle East increased 26 per cent on last year, whereas volumes to China decreased 48pc and held firm for South East Asia according to Department of Agriculture figures.

Mr Whitty said already a number of old stock had been sold off in the north due the dry conditions.

“There’s a little bit of a shortage of mutton showing in the now,” Mr Whitty said.

“The mutton price increase could be due to supply tightening up a little bit.”

J.A. McGregor and Company livestock manager, Mark Smith, Warialda, said mutton had been sold at reasonably solid rates lifting to 300c/kg for ewes to slaughter.

“Mutton will remain solid to dearer if there’s a change in the weather,” Mr Smith said.

And that’s even with the skin values lower, he said.

Mr Smith agreed the peak of the market was a month ago and said it had come back to better than traditional price levels.

“Exporters are doing a good job of selling mutton overseas, new season lambs are coming in, but it won’t affect the mutton market because they’re two different things,” he said.

“The restocker market will improve as long as they have money and the rain keeps coming.”

M.D. and J.J. Anderson Livestock agent, Greg Anderson, Crookwell, said the market was satisfactory.

“The market isn’t too bad, wethers are roughly $80 a head and ewes are $100,” Mr Anderson said.

“I sold crossbred ewes for $102 and the price is pretty good compared to back in January when they were cheaper, making $20.”

Mr Anderson said the market was stronger in winter due to limited supply.

LOOKING for good, long barrelled first-cross ewes with plenty of width and in big numbers, Yenda prime lamb producers Kevin Cauduro and his manager, Mark Chinnery, “Carlisle Park”, couldn’t go past two pens at Narromine store sheep sale last week.

The two pens totalling 410 first-cross ewes were bred by Tony and Trish Smith of Eumalga Partnership, “Broadwater”, Warren.

“We buy replacement ewes here every couple of years and look for about 400 head, so these fit the bill beautifully,” Mr Cauduro said after paying $162 a head.

Mr Cauduro is pictured looking at one of the ewes held by Mr Chinnery while Mr Smith (centre) looks on.

The ewes were August/September 2013 drop by New Armatree Border Leicester rams and June-shorn.

The Smith family are renowned for breeding quality first-cross ewes and sell many store lambs at Narromine throughout the year.

Mr Cauduro said the ewes would be joined to White Suffolk rams in November with the progeny selling through Griffith saleyards.

– MARK?GRIGGS