Low supplies lead to high demand for sheepmeat
Low supply leads to increased competition for sheepmeat
THE national sheep flock is forecast to decline 3.7 per cent to 65.3 million head as many producers are forced to continue destocking as they wait for a turnaround in the weather.
The Warwick Sheep Sale has been receiving high numbers each week in 2019 as the dry conditions continue in southwest Queensland.
“We’ve had some big sales, about 2500 lambs and 1000 sheep at one of our bigger sales,” Top X livestock agent George McVeigh said.
“You’ve seen some drought affected ewes and lambs but there is definitely still some good quality there every week.
“Queensland flock numbers have been back for a long time and if it continues to be dry, of course the numbers are going to back off further.”
Mr McVeigh said market in Warwick had been under stress due to a high number and flow.
“You do still have lambs that have been selling well,” he said.
“47-49kg lambs selling for
❝ Queensland flock numbers have been back for a long time and if it continues to be dry, of course the numbers are going to back off further. — George McVeigh
$150.”
MLA’s Market Intelligence Manager Scott Tolmie said looking beyond the current rainfall deficiencies, a variety of indicators point towards 2019 continuing to be a positive year for sheepmeat prices.
“Fortunately, robust international demand and a low Australian dollar will continue to support Australian exports and, in turn, domestic saleyard prices,” Mr Tolmie said.
“Records were broken in 2018 as markets around the world competed strongly for Australia’s high quality sheepmeat.
“The expectation for supply, and consequently exports, to decline in both Australia and New Zealand will likely see global competition for sheepmeat intensify in 2019.
“The conditions that drove strong prices for well-finished stock last year look likely to remain in place in 2019, particularly while conditions remain dry.
“Sheepmeat supply out of Australia and New Zealand – which account for more than 70 per cent of global trade – has been unable to keep pace with strong global demand, led by China in 2018.”
Mr Tolmie said in 2018, Australian lamb exports increased 7 per cent year-on-year to a record 267,000 tonnes shipped weight (swt), while mutton shipments jumped 23 per cent to 180,000 tonnes swt.
“Reflecting a reduced flock and limited supply, 2019 lamb exports are forecast to contract 8 per cent to 247,000 tonnes swt,” Mr Tolmie said.
“While mutton is projected to fall 16 per cent to 151,000 tonnes swt.”
Mr Tolmie said many producers will be hoping for some consistent rainfall to help alleviate some of the pressures of high feed costs.