Mutton red hot as lamb supply dwindles

Merino sheep in sunset

There were mixed results in the sheep and lamb market this week as wet weather in the south helped push yardings lower again. Restocker lamb returns felt the pinch on the back of poor demand in the west and cautious buying in the east. Mutton prices headed in the other direction, and new season lambs are still yet to be seen in any significant number.

Good news first, which was Mutton. Sheep yardings fell by 8% for the week, equating to about 3000 less mutton through the national indicator – making it the major price point which had the smallest drop in throughput, with all others seeing between 4000 and 11,000 head less this week. The National Mutton Indicator rose nearly 43¢/kg week-on-week, putting it close to 150¢/kg higher than it was this time last year. It and heavy lambs are the only two national indicators still trading above month-ago levels as well. The top three yardings for volume were in NSW, and the state indicator still averaged higher at 878¢/kg.

Heavy lambs were the other category to make significant gains this week, climbing 29¢/kg to land at 1127¢/kg. Wagga Wagga and Forbes, both in NSW, had over half the national heavy lamb throughput and both averaged above 1150¢/kg, reporting strong competition on export weight stock equating to between $5 and $30 price rises. While heavy lambs are trading at just shy of last year’s levels at the same time, it should be noted they are still at the second-highest level for this particular week on record and sit nearly 50% above the longer-term average.

Lamb yardings fell by 28% week-on-week and were the lowest they’ve been since the last week of January, which was impacted by a public holiday. Prior to that, we have to go back to Easter 2025 to find lower lamb yardings – and those again were short weeks. This didn’t help the restocker market though, with the national price losing 53¢/kg for the week to close at 1043¢/kg, a decline of more than 115¢/kg in the past four weeks.

However, the east-west divide was significant in this category, with Wagga Wagga having 21% of the throughput and averaging 1206¢/kg, while Muchea, WA, had the second highest yarding with 18% and averaged just 943¢/kg – a differential of 263¢/kg. Kattanning in WA also had a significant yarding, with 12%, and averaged just 666¢/kg, while Bendigo in Victoria had the highest price point with any significant number at 1218¢/kg. National Livestock Reporting Service quoted seasonal restockers in attendance at Muchea as being selective and avoiding older lambs.

Next week

Mutton and export lambs look to be the flavour of the moment, perhaps as processors look to fill kill space while waiting for new season lambs to come along. Despite the national price, restocker demand will likely remain firm in the east after more rain fell this week. With the winter many in the southeast have had, we should see good numbers of new season lambs at high weights enter the market sooner rather than later – if producers can get them dry.

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Data sources: Meat and Livestock Australia, Mecardo

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