W31: Mutton & Lamb Update
In W31 in the lamb and mutton landscape, Australian sheep yardings eased by 6% to 203.68 thousand heads compared to W30. This is primarily due to a 27% week-on-week (WoW) drop in Victoria's yardings to 31.22 thousand heads. Although Corowa, Yass, and Wagga Wagga in New South Wales (NSW) experienced similar declines, Cootamundra, Deniliquin, Guyra, and Inverell sales partially offset these. Price trends were varied, favoring heavier lambs over light lambs and sheep. The trade lamb indicator increased by USD 0.07/kilogram (kg) carcass weight (cwt) to USD 3.19/kg cwt. This was driven by strong offerings at Dubbo, trading at USD 0.46/kg cwt above the national average. Mixed conditions for lighter lambs and mutton contributed to sideways price movements. Fewer grain-fed lambs were presented while new season lambs began to enter sale yards, albeit in small numbers.
The skins market experienced a decline in the Australian market, with X-bred sheep incurring disposal fees at some processors. Despite a drop in lambskin prices, Merino sheepskins still fetched USD 6.14/skin. Lamb slaughter rose by 9.5% WoW to 407.82 thousand heads, while sheep slaughter increased by 15% WoW to 131.27 thousand heads. Both sheep and lamb slaughter remained elevated compared to 2022 levels, driven by increased supply and strong demand. Lamb exports softened by 3% month-on-month (MoM) but rose by 11% year-on-year (YoY), totaling 27.84 thousand metric tons (mt). Meanwhile, mutton exports decreased by 27% MoM but saw a substantial 53% YoY increase, reaching 12.88 thousand mt.
The Irish sheep trade continued with a downward price trend for spring lambs in W31, with factories further reducing prices. Concerns were raised about poor kill outs for lambs under 45kg. This prompted warnings that achieving target weights may require additional feeding on ration. The Irish Cattle and Sheep Farmers’ Association (ICSA) advocated for a sheep payment of USD 38.44/ewe, along with an emergency package for a short-term payment of USD USD 21.97/ewe in 2023. Kildare Chilling offered USD 5.49/kg or the same price for hoggets and cull ewes. Irish Country Meats (ICM) quoted USD 6.37/kg plus a USD 0.22 Quality Assurance (QA) bonus for hoggets. Other outlets offered USD 5.93/kg for hoggets. ICM's spring lamb price dropped by USD 0.22/kg to USD 6.92/kg plus a USD 0.22 QA bonus. Other outlets offered USD USD 6.92/kg plus a USD 0.16 QA bonus. Kildare Chilling quoted USD 3.19/kg plus a USD 0.11/kg QA bonus for ewes, while ICM maintained USD 3.19/kg up to 45kg. Other outlets offered USD 2.97/kg for cull ewes.
Lastly, Ukraine's live sheep and goat exports totaled 130 mt, valued at USD 147 thousand from Jan-23 to Jun-23. This is a substantial 2.9-fold decrease in volume and a 3.9-fold decline in value compared to the same period in 2022. Lebanon was the primary destination for Ukrainian sheep and goat exports throughout this period, benefiting from recently established trade relations. Remarkably, Ukraine did not engage in live sheep and goat imports during the first half of 2023.
