More bite appears to be entering the spring lamb trade and deals are beginning to be done at higher prices. As it stands, some farmers are securing prices of 470-475c/kg for spring lambs.

Despite this, factory buyers are remaining steadfast with the quotes they are offering. Generally speaking, negotiations are starting with farmers at 450-460c/kg (excluding bonuses).

However, farmers involved in producer groups or individual producers – supplying large numbers – are starting to secure higher returns.

Some processors have also moved to higher carcass cut off weights – 22kg in some instances – over recent weeks and this is helping greatly to contribute to the returns being generated.

However, with the weather that’s being forecast, farmers need to keep a careful eye on the Clean Livestock Policy for sheep. A number of factory buyers have told AgriLand that unsatisfactory lambs will be turned away.

Moving on to the ewe trade, factory buyers are starting negotiations with farmers at 240c/kg, payable up to 40kg carcasses.

Supplies

Meanwhile, figures from the Department of Agriculture show that some 67,663 sheep were slaughtered in approved export plants last week – a climb of 2,283 head or 3.5% on the week before.

A 3,113 head increase in spring lamb supplies was responsible for the majority of this increase, but hogget and cast (ewes and rams) both decreased.

Week-on-week sheep kill changes:
  • Hoggets: 73 head (-46 head or -38.7%);
  • Spring lambs: 54,911 head (+3,113 head or +6%);
  • Ewes and rams: 12,678 head (-779 head or -5.8%);
  • Total: 67,663 head (+2,283 head or +3.5%).

Official figures also show that just over 2.26 million sheep have been slaughtered up to and including the week ending October 7 this year.

Throughput increases were witnessed in the hogget and cast categories, but spring lamb numbers continue to run approximately 2% behind the same period in 2017.

Year-on-year sheep kill changes:
  • Hoggets: 828,875 head (+22,152 head or +3%);
  • Spring lambs: 1,046,620 head (-19,186 head or -2%);
  • Ewes and rams: 386,705 head (+54,668 head or +16%);
  • Total: 2,262,339 head (+56,871 head or +3%).