Demand for WA lamb continues to soar

The WA lamb market is continuing to flourish as ongoing demand from the east coast drives re-stocker prices upwards. Meat and Livestock Australia figures show the State’s re-stocker lambs are securing an all-time high of 714¢/kg carcase weight on the back of the past month’s bullish buying from Eastern States agents. On the east coast, re-stockers were last week fetching as much as 1022¢/kg cwt, but values did record week-on-week falls for the first time this year. Mecardo analyst Angus Brown said the more than 300¢ difference easily accounted for the cost to truck the lambs from Katanning Regional Saleyards and Muchea Livestock Centre across the Nullarbor. Mr Brown said although WA’s re-stocker market was rising, buyers from the east would still view the State as a viable sheep source as the national flock dwindled. “In WA, re-stocker lamb prices have started to lift,” he said. “Demand from the east is dragging WA re-stocker prices higher, and they have also hit a record at 714¢/kg cwt. “The 300¢ spread between the east and west is more than enough to pay for freight.” Another strong yarding was penned at the Katanning Regional Saleyards last week, with more than 20,000 head sent to the livestock selling centre as farmers seek to capitalise on high prices. Prices reportedly eased across most categories as the facility had 23,314 sheep and lambs go under the hammer last Wednesday. However, a pen of extra heavy weight lambs secured $204 per head and mutton topped $212 a head, despite fewer east coast buyers and no live exporter purchasers present at the auction. The sale came as the Department of Primary Industries and Regional Development warned the unprecedented number of WA sheep and lambs heading east could jeopardise the State’s sheep industry. Latest DPIRD figures show a record 239,600 sheep and lambs were transferred from WA through the Ceduna check-point in South Australia in January and February. It is understood there has been a shortage of livestock trucks in WA in recent weeks, with many completing east-bound journeys. DPIRD senior development officer Mandy Curnow warned farmers to consider the impact of selling young breeding stock on future flock profitability. With Australia’s flock forecast to drop 3.5 per cent to 63.7 million head by June — its lowest level in more than 115 years — Mr Brown said the short sheep supply was driving demand. “The reasons for the increase in price are well documented,” he said. “Tight supply of lambs in general, coupled with increasing demand from producers that are finally growing grass has driven the rapid price rise.”