VICTORIA is rivalling NSW’s sizzling lamb market, as agents predict sustained record prices stimulated by a delay in early sucker supply.
Triggered by a fall in lamb numbers, major meat processors have issued forward contracts for trade lambs at “unheard of” rates up to 720 cents a kilogram carcase weight this week, in an attempt to fill current and spring orders.
The price rise is on the back of major sheep selling centres across NSW and Victoria reporting record prices from 750-825c/kg, which made headlines after a pen of extra heavy lambs sold at $258.20, at Wagga Wagga, NSW, last week.
“Good quality sucker lambs – whatever the breed they may be – will be extremely hard to find,” Elders auctioneer, Dick Douglas, Deniliquin, said.
“What we have seen with grid prices in the last 48 hours are people realising the numbers in a quality, well-finished product won’t be on offer – it’s on for young and old.”
On Monday, Bendigo sheep and lamb sale received more than 700c/kg, with some agents reporting up to 800c/kg for light lambs.
“Traditionally, we would start to see early sucker lambs sold in the next six weeks, and the southern NSW supply carry through until Victorian sucker lambs hit the market September/October,” Mr Douglas said.
“But there will be a big gap between the north and when Victoria’s lambs come on the market, which is why we are seeing these prices and unheard of forward contracts.”
As NSW continue to struggle with drought conditions, Mr Douglas said, “the damage is done” and a turnaround in lamb finishing conditions was unlikely.
“The only suckers will be from the irrigation district in Deniliquin and Swan Hill. In the pastoral area, it is doubtful lambs will even make suckers because of the season,” he said.
“A lot of rain in the short-term might turn things around slightly but basically the damage is done. We need rain over a huge area and we need it very soon.”
His predictions were echoed by agents across the north of Victoria, while in central Victoria, conditions were faring better.
Rodwells livestock manager, Nick Byrne, Bendigo, said sucker supply in the region was delayed more than one-month.
“We are not holding the lambs back if the market stays this good – it is a case of when the lambs are ready to go,” Mr Byrne said.
“Central Victoria is on a knife-edge. If we don’t start getting rain, we will also have trouble finishing our lambs.”
He said the shift in grain and hay fortunes means producers were being torn between finishing lambs or selling feed reserves at a premium.
“All this can change with two inches of rain but prices will remain in this uncharted territory,” Mr Byrne said.
Annabelle Cleeland
Annabelle Cleeland is Fairfax Media’s national sheep and wool writer. Annabelle joined the Fairfax team in 2012 to nurture her love of Australian agriculture. She began as the Victorian western district reporter at Stock & Land before taking on a senior position as a journalist reporting on all industries statewide. Annabelle’s appetite to report on issues which affect the sheep and wool industry has seen her travel to many parts of Australia and abroad. She is excited to spin industry yarns during a period of substantial demand for the sheepmeat and wool industries. Annabelle enjoys horse riding and climbing mountains, and is a lazy supporter of the Geelong Football Club.
Annabelle Cleeland is Fairfax Media’s national sheep and wool writer. Annabelle joined the Fairfax team in 2012 to nurture her love of Australian agriculture. She began as the Victorian western district reporter at Stock & Land before taking on a senior position as a journalist reporting on all industries statewide. Annabelle’s appetite to report on issues which affect the sheep and wool industry has seen her travel to many parts of Australia and abroad. She is excited to spin industry yarns during a period of substantial demand for the sheepmeat and wool industries. Annabelle enjoys horse riding and climbing mountains, and is a lazy supporter of the Geelong Football Club.
