In W32 in the lamb and mutton landscape, the Food and Agriculture Organization (FAO) indicates that the meat price index averaged 117.8 points during Jul-23, a slight decrease of 0.4 points (0.31%) compared to Jun-23. The declining trend in sheep meat prices persisted for the third consecutive month. This is attributable to abundant supply in Oceania and reduced demand from major importers, especially China and Western Europe.
The Australian sheep market displayed mixed dynamics in W32, with mutton and heavier lamb prices experiencing decreases. On the other hand, young lamb prices rose due to new-season lambs' entry into sale yards. Yardings increased by 5% week-on-week (WoW) to 222.78 thousand heads. This was driven by a rise of 10.47 thousand heads in lamb yardings to 167.68 thousand heads. Notably, yardings increased slightly across the east coast despite Western Australia (WA) registering a decline of 4.98 thousand heads to 9.08 thousand heads.
The Australian trade lamb indicator decreased by USD 0.10 to USD 3.06/kilogram (kg) carcass weight (cwt) in W32. In Wagga, prices dropped USD 0.29 as limited buyer interest affected old trade lambs, though the indicator remained above the national average at USD 3.31/kg cwt. In contrast, the restocker lamb indicator surged by USD 0.53 to USD 2.29/kg cwt. However, this was a small component of the market overall, making up only 7% of total lamb yardings, as restocker lamb yardings fell by 6.12 thousand heads to 12.46 thousand heads. Sheep and lamb slaughter remained high, reaching 577.32 thousand heads. Lamb slaughter accounted for the majority of the rise, increasing by 36.66 thousand heads to 444.48 thousand heads. Meanwhile, sheep slaughter grew by 1.57 thousand heads to 132.84 thousand heads.
Irish factories urged farmers to provide heavier lambs for processing due to concerns about underweight lambs amid plummeting spring lamb prices in W32. The Irish Cattle and Sheep Farmers Association (ICSA) highlighted that many lambs were below the desired weight due to insufficient prices. Irish Country Meats (ICM) increased carcass weights from 21.5kg to 22kg for spring lambs, encouraging heavier lamb delivery. ICM offered USD 6.57/kg plus a USD 0.22 Quality Assurance (QA) bonus, a USD 0.33/kg drop from W31. Other outlets offered USD 6.57/kg plus a USD 0.16/kg QA bonus for a spring lamb, a USD 0.33/kg decrease. ICM's hogget price was USD 5.26/kg plus a USD 0.22 QA bonus up to 23kg, down USD 1.10/kg from W31. ICM maintained its price for a cull ewe at USD 3.18/kg up to 45kg. Other outlets offered USD 2.96/kg for a cull ewe.
Lastly, the European Commission (EC) eased livestock movement restrictions related to sheep and goat pox in the Castilla-La Mancha region in Spain, following successful disease control measures. The animal health efforts led to effective disease control, with no new cases reported since the last outbreak on May 17. Spain's request prompted the EC to modify Decision (EU) 2022/2333, enabling animal movement from the additional restriction zone, which covers the provinces of Albacete, Ciudad Real, Cuenca, and Toledo provinces, to a free zone for slaughter or life towards production farms and feedlots. The restriction zone's movement limitations will continue until September 25. Assuming no new outbreaks occur before that date, the entire national territory will regain its status as free from sheep and goat pox.