Drop in mutton supply lifts prices, demand

But with the boom in lamb supply has come a drop in numbers for the mutton market, resulting

in higher prices and increased demand as producers attempt to rebuild their flocks coming into spring.

National Livestock Reporting Service (NLRS) sheep analyst, Josh Anderson, Sydney, said the prices for mutton were higher compared to those during the winter months, with more interest from restockers and processors at sales across NSW.

The poorer quality at many sales throughout winter contributed to the lower prices during this time, he said, but the turn of the season and the good rainfall experienced by most of the State has begun to increase the demand for breeding ewes.

“The lamb prices are very good at the moment, and producers are snapping up anything that is suitable for breeding, while a lot are holding on to their older ewes to get as many lambs out of them as possible,” Mr Anderson said.

“Lamb prices are about six cents or so below what they have been, but still good enough for producers to want to get as many lambs into the market as they can.”

Numbers of older ewes through the sales have increased compared to last year, he added, especially at Wagga Wagga, where last week 7000 sheep were yarded, compared to the 4500 yarded at the same time in 2010.

Today at Cowra agents were coming together to hold a special sheep sale, which would feature about 7000 ewes from local and western region producers.

Allan Gray and Company stock and station agent, Bill Brien, Cowra, said there was no reason the market at today’s special sale would be different to their recent store sales, though some rain would have gone far to add to the confidence of both vendors and buyers.

Mr Brien said many of the sheep yarded at Cowra recently had been of good quality, and many of those available had been cast-for-age sheep with lambs only recently weaned off them.

“To see us get similar prices seen at the Forbes sheep sale last Thursday would make everyone pretty happy,” Mr Brien said.

“I think the prices will be fairly solid, but they won’t be stupid.”

Cowra, he said, has been experiencing good prices for sheep, despite not having many come through the saleyards recently, which is a trend many centres are experiencing as producers hold on to even their older ewes.

“Prices are solid even though the market is not as strong as it has been, compared to two or three months ago,” Mr Brien said.

Agents were reporting firm prices for the older sheep market in the south, with this week’s sale at Bendigo, Victoria, slightly cheaper compared to other sales in the region.

Elders Deniliquin livestock agent, John Fitzpatrick, said heavy ewes reached $127 a head at the very top end of the yarding at the sale on Tuesday last week.

Also at the top for this sale was a pen of wethers, weighing 33.88 kilograms, which sold for 450c/kg.

“These are the prices we’re seeing at the moment for the very good quality older sheep, but the lighter ewes are selling between $80/head and $90/head,” Mr Fitzpatrick said.