Labour shortage causes lamb and sheep price correction

The trade lamb indicator sat at 817 cents a kilogram carcase weight Monday night, 46c/kg lower compared to this time last year.

The heavy lamb indicator closed at 814c/kg, slipping 12c/kg in a week, but 43c/kg down year-on-year.

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However, the restocker indicator is showing some resilience at 938c/kg, lifting 9c/kg from last year.

Prices have dropped because abattoirs are struggling to find workers as well as big numbers of trade and heavy lambs travelling direct to processors

This has meant there are fewer buyers operating to capacity at saleyards which has contributed to the price correction which started last week.

The drop in price was reflected at Wagga Wagga, NSW, with abattoir slowdowns and fewer buyers participating.

In a bigger yarding of 42,000 lambs, the market was influenced by the lack of demand which plagued price outcomes across the board.

Trade lambs dipped $4 to $10 making from $156-$208 a head to average 850c/kg cwt.

Agents said the pressure of patchy demand from exporters pushed rates $10-$15 lower.

Big super-sized lambs 30kg cwt and heavier made from $234-$304 to average 770c/kg cwt

Sheep prices were up to $15 cheaper with the market very selective and big carcase spreads were recorded based on quality and breed.

Heavy mutton averaged 485-510c/kg, while trade sheep sold at $106-$154 to average 556c/kg cwt.

Northern saleyards have started to yard fewer lambs this week as farmers with feed in front of them react to the significantly cheaper price trends.

Major sales on Monday reported cheaper markets across the board.

At Bendigo, there was only a slight change in supplies with agents mustering 12,400 lambs and 3,700 sheep.

The sale was dragged down due to lack of competition and fewer buyers at the market.

Trade lambs 22-24kg sold $14 cheaper and averaged 798c/kg cwt, while at Corowa subdued demand and a small field of buyers resulted in rates sliding $28-$30 to average 816c/kg cwt.

Heavy export lambs sold to similar price trends in both states to average 695-723c/kg

Meanwhile, numbers were steady at Ballarat on Tuesday where agents offered 28,585 lambs and 9,138 sheep.

Quality was good to exceptional with a large portion shorn and supplementary fed.

The sale lacked intensity over all classes and buyers were not prepared to chase the market.

Trade lamb rates eased $10-$15 to average 794c/kg cwt.

Extra heavy lambs fell $8-$17 and made from $211-$290.