STRONG global demand for goat meat, boosted by free trade agreements, has combined with tightening supply to create record farmgate returns and encourage more livestock producers to start farming rather than wild harvesting.
Meat and Livestock Australia’s export goat over the hooks indicator for the 8.1 to 10 kilogram category last week hit an all-time record of 556 cents per kilogram carcase weight, up a massive 251c on the five-year average.
Heavier indicators are also tracking a solid 130c/kg or more above prices this time last year.
The typical winter slaughter slowdown across the eastern states due to cooler weather and rain in key supply regions affecting transport and the ability to trap and muster animals has exacerbated the demand-outstipping-supply situation, according to MLA’s Goat Industry Project Manager Julie Petty.
She described the situation as a ‘perfect storm’ for producers.
“Feedback from exporters indicates that overseas demand remains strong at the same time supply is tightening considerably,” she said.
“The consistent higher prices have also meant that animals are potentially being sent to slaughter earlier then they may otherwise have been which is further contributing to the shortage.
“It means it’s an opportune time for producers to look into setting up semi-managed herds to help sure up their own supply base.”
Around 95 per cent of Australia’s goat meat is exported, with the United States taking the largest volumes.
The product was used by Hispanic and Muslim populations in the US as a traditional part of their diets and cooking methods, Ms Petty said.
Australia is the largest goat meat exporting nation, accounting for around 50 per cent of the global trade.
Australian goat meat exports during May lifted 10 per cent year-on-year, to 1,934 tonnes swt. Year-to-date volumes are tracking relatively closely with the same period last year, at 13,243 tonnes swt.
This is the first time goat meat, on a cents per kilogram basis, has been worth a similar amount to beef and lamb.
MLA’s latest goat industry summary shows that last year, goat production reached 32,746 tonnes cwt, which was five per cent above the five-year average.
Victoria, followed by Queensland, are the biggest producers and the vast majority is from rangeland enterprises.
However, that could be about to change, one of Australia’s biggest goat meat processors, Western Meat Exporters in Charleville, Queensland, believes.
Managing director Campbell McPhee said his company had paid 17 to 20pc more for its supply over the past 12 months.
The plant processes 17-18kg skin-on and has a throughput capacity of more than 3300 head per day, or 660,000 per year.
It is currently running below 50pc capacity, with weather causing big supply issues in the past few weeks.
Most of its product goes overseas.
Mr McPhee said fast-growing demand from South East Asia, Korea, Canada and the United States was underpinning strong prices.
“The world population of goat eaters is growing and new and emerging economies have more ability to pay for Australian goat meat,” he said.
“FTAs and alignments with emerging markets in Korea and China has boosted that demand even more.
“Our goat business was built on American migration but other markets are now putting pressure on the US price to our advantage.”
The traditional highs and lows of farmgate goat prices in Australia were a thing of the past, he said.
“People can now make investments in the goat industry and be confident of the high price staying,” he said.
“We are going to see far more managing rather than wild harvest.”
Just how high can the goat price go?
MLA says the unusual situation with beef, lamb and goat price indicators within 3pc of each other could be maintained for the winter months, especially if positive rainfall outlooks come to fruition and the availability of stock remains tight.
Mr McPhee said for goat meat, at a certain price point competition from pork and chicken would kick in but just where that price point sat was as yet unclear.
