Mutton prices have taken a hit in the past few months as supply in the saleyards exceeds the numbers offered last year.
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Meat and Livestock Australia market analyst, Jenny Lim, Brisbane, said this was a result of three previous bumper seasons for most areas of NSW and producers being able to hold onto more older sheep numbers than usual.
But now with producers having younger stock coming through, the older sheep were being sold on.
Ms Lim said the results of a recent survey showed a three-way split with what producers had in mind for their operations for the next 12 months.
Producer options were: to increase flock numbers; decrease numbers; or, hold the same amount of head in their operation.
The results indicated the main cause of producers wanting to decrease flock numbers, was to cull the portion of older ewes.
"Normally we see a seasonal dip in ewe numbers before joining but we are not seeing that to the extent that we usually do," Ms Lim said
"At the moment there is a lot of ewes around.
"I think there's a lot of ewes that people have held onto during the rebuild that are empty now or not productive anymore, that may have held onto for another year because the conditions were so good."
Quade Moncrieff Livestock and Property livestock agent, Paul Quade, West Wyalong, supported this and said producers were looking at reducing numbers now after some dry patches throughout the area.
"They're cutting into them a little bit more, we've had a bit of a dry spell," Mr Quade said
"Even though the mutton job is not great, they can't see it picking up a lot.
"Anything that has been coming in dry has been meeting the market in the prime pens or over the hooks."
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McCarron Culliane Chudleigh agent Adam Chudleigh, Forbes, said while people were still offloading ewes at the moment, a larger number of sheep were yet to be sold.
"We're seeing producers still offload, but we probably haven't seen the big numbers offered yet," Mr Chudleigh said.
"I think in the spring we will see a lot of numbers come onto the market of older sheep once we wean lambs.
"There could be a bit of a glut come August, September and into October."
Sheep producers, Paul Northey and daughter Emma, Innisvale, Kikoria, said the numbers of sheep coming through the saleyards could be the "new norm" for the market.
"I think it might be the new-norm what's going on" Mr Northey said.
"We run a self replacing Merino flock.
"The younger cull ewes are kept and joined to White Suffolk and the six-year-old ewes go to the mutton market."