Australia: Slaughter rates expected to ease after strong year for sheepmeat sector

The ANZ Summer Agri In Focus report forecasts a decrease in sheepmeat slaughter rates over the summer due to a decline in supply from the north and reliance on southern supply, which may be affected by weather conditions. Despite this, lamb prices have seen significant growth over the past year due to a variable season in the south, leading to a shorter supply of heavy lambs. There has been a persistent gap between lighter and heavy lambs, with dry conditions and feed availability concerns in southern sheep-producing areas. Retail lamb prices have risen since their discounting later in 2023, making lamb a competitive choice compared to pork and poultry for the Christmas table. Additionally, the report highlights an increase in new-season lambs in sale yards, steady total yardings leading into summer, and a decline in ewe numbers. The growth in Australian export markets for lamb, particularly in the US and Middle East, continues to support demand for heavy lambs, while mutton exports have also seen growth, especially to the Middle East.