HARVEST delays have put the brakes on lamb supply, triggering extraordinary new year lamb prices.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The impact has been a scramble for processors filling orders for the lamb advertising juggernaut that is Australia Day.
Processors have been willing to pay more than 600 cents a kilogram carcase weight for the past fortnight, with the National Trade Lamb Indicator closing the week at 611c/kg cwt, 85c/kg above year-ago levels.
Westside Meats livestock manager Ray Clarke at Bacchus Marsh in Victoria, said a three week seasonal delay due to wet spring conditions had ignited a “price war” with processors caught short for supply prior to Australia Day’s sales peak.
“In the Mallee and Wimmera regions harvest has been late to finish so fattened lambs coming off the stubble are three weeks behind and holding up supply,” he said.
“The big lambs that are making $200/head were bought in September and shorn early or held because of the wet seasons - these producers are reaping the rewards now.
“They’ve got lambs ready now while everyone is chasing around trying to keep their supply and meatworks functioning.”
Light lambs closed at 611c/kg last week but the highest rates were being paid by restockers, whose spending average was 668c/kg.
Trade lambs have jumped 203c/kg in the past two years after closing the week at 601c/kg, while competition for heavy lamb broke through 600c/kg to finish early at 605c/kg.
While Meat and Livestock Australia reported a 36.9 per cent increase in lamb sales following last year’s two week advertising campaign, Mr Clarke said the 85c/kg price increase in the last 12 months had reached a level of buyer resistance.
“Australia Day does normally have an effect, but the price of lamb this year has caused sales to be quieter,” he said.
“We have had a big jump in prices in the past couple of weeks and that affects sales with some butchers that might buy 20 lambs a week, only buying 12.”
Australia Day impact tends to bolster sales for about two weeks, before prices ease slightly.
“Prices might ease when we get some numbers, but we won’t see the trade meat soften dramatically because of the shortage of supply,” Mr Clarke said. “We will get a period of time when heavy lambs come out and there is a bit of movement mid-February to Easter – once again we need to wait for those stubble lambs to be ready.”
Rather than opting to discount more popular Australia Day cuts such as lamb racks or cutlets to capitalise on patriotic sales, the major supermarkets have jointly discounted lamb leg roasts as low as $7.99/kg.