Australia’s largest red meat exporter has released early its lamb forward contract schedule for the upcoming spring production period.
JBS Australia, which operates mainland lamb plants at Brooklyn and Cobram in Victoria and Bordertown in South Australia, has unveiled a range of prices from an opening high of $6 a kilogram, to $4.80 for the peak November supply.
JBS southern livestock manager Steve Chapman said prices were similar to lamb purchase costs made during the same period last year.
“However given the potential of the upcoming season, they actually provide producers with a better potential dollar per head return,” Mr Chapman said.
“We’re anticipating lambs will come forward with more weight. And at a $5.30/kg average across the schedule, producers could win an extra $10-$12 a head this season.
“Even at the lowest price ($4.80/kg) a contracted 22kg new season lamb can return $115 a head inclusive of a $10 skin.”
He said the company had gained good response for its early release. And although the industry eagerly awaited the results of the latest MLA/AWI lamb producer survey, he said anecdotal evidence suggested new season lamb numbers this spring could be similar to last year with near to average lamb markings being reported.
“What we’re hearing and it is evidenced by the lack of older ewes being slaughtered presently is anything considered sound has been kept for another year of breeding. And given the season’s potential, and it doesn’t matter how far you travel into NSW, we know ewe numbers have been depleted by the previous dry and these extra ewes could prove to be a savior.”
Mr Chapman said the November low spot in the JBS price schedule signified the completion of pre-Christmas production. He said the second week of that month was the cut-off point for shipments made to the United States for Christmas commitments.
This is also a time when decisions and preparations are made to purchase or carry-over store lambs for autumn production.
“We understand the additional costs involved in supplying lamb for the year’s second half and we suggest the ideal buy-in money for store lambs this spring would sit in the $75-$85 a head range,” Mr Chapman said.
He said there would be uncertainty following Britain’s planned exit from the European Union.
“It is too early and too raw to know yet whether any benefits or negative impacts will flow to Australia, given our previous low EU quota allocation,” he said.
“We may actually see the greatest impact on other markets rather than just the EU as more NZ product may end up in other non-traditional markets they would normally not supply.”
