In W23 in the lamb and mutton landscape, Australian lamb prices are continuing to ease despite reduced throughput, as market confidence takes a dip. Easing re-stocker demand and the absence of notable trade and export buyers at some sales yards are taking a toll on prices as winter sets in. All national indicators have eased WoW and remain well down from year-ago levels. As of June 6th, Australian re-stocker lamb had taken the biggest drop over the week, declining USD 0.76 to USD 3.91/kg, while light lamb had the best weekly performance only losing USD 0.23 to USD 4.32/kg. The Australian mutton indicator lost USD 0.34 to USD 3.64. The best yearly performance was in the heavy lamb indicator at USD 6.14/kg, down USD 1.86 YoY, after dropping USD 0.31 WoW. All other indicators were down by between USD 2.60 and USD 3.81 when compared to year-ago pricing. Reduced Australian throughput could also be attributed to producers holding on to the stock for joining. While sheep slaughter eased over W23, Australian lamb slaughter picked up. Combined sheep and lamb slaughter is still 25% above 2022 levels and 42% above 2021 numbers.
In Q1-2023, Australian sheep slaughter reached 2.36 million units, up 54.2% compared to Q1-2022. This was mainly due to the greater number of slaughtered sheep. Meanwhile, Australian lamb slaughter amounted to almost 5.7 million units, an increase of 13%. Therefore, Australian sheep and lamb production in Q1-2023 amounted to 196.3 thousand mt, more than a fifth higher than in the first three months of 2022. At the beginning of 2023, MLA expected 2023 Australian sheep and lamb production to reach 762 thousand mt, up 8.5% YoY. MIA indicates that, in Apr-2023, New Zealand’s sheep meat exports totaled 38.63 thousand mt, valued at USD 393 million, down 10% YoY in volume and 2% YoY in value. Compared to Apr-2022, there was a growth in exports to China and the major European markets but declines in exports to the US and the UK. The overall decline in value and the drop in the US are partly the results of a drop from high values in Apr-2022. Also, conditions in the UK remain challenging for sheep meat.
According to Bülent Tunç, President of the Turkish Red Meat Producers Central Union (TÜKETBİR), there are enough animals for sacrifice in Turkey, thus there will be no shortage of supply during the Eid al-Adha. He stated that there are approximately 3 million sheep and goats in the hands of Turkish producers, with prices ranging from USD 211.41 to USD 634.24. He stated that the main driver of livestock prices is the cost of production. Also, transportation to animal markets and the cost of renting a place affect the prices of livestock. Lastly, in Indonesia, East Java Governor, Khofifah Indar Parawansa, has assured that the availability of livestock for 2023 Qurbani (animal sacrifice) is in surplus in the province. Specifically, the availability of sheep in East Java is 277 thousand heads, while the need for sacrifice is only 35,291, a surplus of 241,709.
