The latest livestock production figures are out from the Australian Bureau of Statistics, and it will come as no surprise that sheep and lamb turnoff was historically high for the first three months of the year. Lamb slaughter rose very marginally year-on-year but still recorded the second highest quarterly figure on record, while the sheep kill was lower than the previous quarter, but well up the same quarter of 2024.
Looking to lambs first, the December 2024 quarter being the lowest for that year – the lowest since the June 2023 quarter actually – meant more lambs leftover for the start of 2025. Lamb slaughter for January-March this year reached 6.85 million, just 0.4% stronger than the same quarter last year, but an 11% rise on the December 2024 quarter. It was 19% above the five-year-average for the period, and has only been surpassed once on record, being the June 2024 quarter.
Victoria led the charge, their tough season no doubt pushing lambs into the new-year. The state slaughtered a record 3.83 million head, nearly 5% more than the same period the previous year. Western Australia was the only state to slaughter less lambs than the December quarter, down 6% from December, and nearly 15% from March 2024.
There were about 3 million sheep slaughtered in the March quarter, which was a dip of 14% compared to the previous quarter. It was an increase year-on-year, however, by nearly 7%, or just over 200,000 head. Historically, it was only the second time sheep slaughter had surpassed 3 million since 2014, the first being December 2024, confirming the strong flock numbers and the dry conditions in southern Australia continued to heighten turnoff.
Sheep slaughter in NSW rose more than 9% year-on-year and was close to 40% above the five-year-average for the quarter, while it dropped in Victoria, both compared to the previous quarter, and the same quarter in 2024. In South Australia, sheep slaughter was up more than 25% from the same period last year, and 44% above the average.
Interesting to note that despite difficult conditions for many sheep producers, strong demand supported pricing and this alongside the high turnoff meant the gross value of sheep and lamb production rose to $1.58 million, an increase of more than 20%.
What does it mean?
Annual lamb slaughter this year is projected to be generally on-par with 2024, and first quarter figures are similar, with 2025 numbers less than 1% higher year-on-year. Traditionally the sucker season dictates that the second half of the year has the strongest lamb slaughter figures, however last year it was the June quarter which set a new record.
So far this quarter MLA weekly slaughter numbers have averaged about 7% lower year-on-year. And with higher lamb prices being offered for July contracts, those lambs that are yet to be turned off may flow into next quarter. This will likely mean a decrease in quarterly lamb slaughter for the three months to June, supporting prices as we head into winter. We then wait to see what impact high sheep turnoff has had on next season’s drop.
Key Points
- Lamb slaughter surged in the first quarter of 2025 to its second-highest on record.
- Sheep slaughter dropped from the previous quarter, but remained historically high, reaching the 3 million head mark for only the second time since 2014.
- Weekly figures have lamb supply contracting this quarter, and high sheep turnoff could impact the next.
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Click on figure to expand
Click on figure to expand
Data sources: MLA, ABS, Nutrien, Mecardo
