In W19 in the lamb and mutton landscape, the FAO indicates that the average meat price in April was 114.5 points, up 1.3% MoM, but down 6.1% YoY. Specifically, lamb prices in April were mostly stable, as the increase in export supply from the countries of Oceania practically corresponded to the increase in imports from the countries of Asia and the Middle East. Australian sheep and lamb yarding held firm with another strong week of sales. Wagga Wagga yarding softened by 5K heads, with some producers holding off selling stock after softer prices, allowing prices across most weights and categories to improve at the sale yard. Australian lamb slaughter also increased by 90.83K heads, up 28% WoW, the second-highest weekly slaughter volume for 2023, with eastern states' lamb slaughter only reaching above 370K heads twice since December 2019. Both times have been in the last month, demonstrating the current high supply in the market. The Australian government is determined to commit USD 3.75M over two years to phase out live sheep exports by sea since it understands that the move is expected to impact farmers, exporters, and other supply chain participants.
In W19, the Irish sheep trade saw factory-fit sheep prices firm up and even increase at some sites after falling at many plants over the past two weeks. In the first 17 weeks of 2023, Irish overall sheep kill increased by 3% YoY. However, YTD Irish spring lamb supplies dropped by 7.5K heads, down 28% YoY. Bord Bia forecasts the Irish 2023 lamb crop to contract, even though an additional 60K-70K hogget have been carried into 2023 for processing when compared to 2022 levels. Prolonged wet conditions in March and April are expected to reduce lamb performance on grass and are anticipated to delay the arrival of this season’s lamb crop further. In South Africa, sheep and lamb carcass prices were volatile in April 2023, with prices first strengthening and then weakening towards the end of the month. The A2 price closed at USD 4.41/kg, the B2 price at USD 3.12/kg, and the C2 price at USD 2.88/kg. However, weaning lamb prices brought relief as they continued to strengthen and closed at USD 2.19/kg. The weaning lamb prices are expected to rise further with the lower supply during the winter.
In Q1 2023, the American Lamb Board (ALB) and American Sheep Industry (ASI) indicate that US lamb and yearling slaughter was 11% higher than in the same period in 2022, but slaughter levels were smaller in 2022 due to increasing numbers of lambs on-feed. Lighter weights helped offset the larger numbers, with production only 7% higher in the first quarter. In the first three months of 2023, US lamb imports were 9% lower than in 2022, with import volumes from both Australia and New Zealand below a year ago levels, down 7% and 13%, respectively. Lastly, for the first time, Paraguay produced in vitro embryos of the Santa Inés breed, marking a milestone for national sheep farming, responding to the constant desire to improve the country's flock. This was due to work promoted jointly by the Paraguayan Association of Breeders of Santa Inés (APCSI) and producers of the breed. The first transfer is estimated to be achieved by the end of 2023, once the pertinent registrations and certifications have been completed.
