SHEEP and lamb producers continue to hold all the cards in the opening weeks of this year.
Trade and heavy weight lambs indicators are at record levels for January as they move closer to 500c/kg.
Following the first full week of reporting for the year, the trade lamb (18-22kg) indicator finished Monday at 489c/kg.
This was a rise of 22c/kg on the previous week and 87c/kg better than the same time last year, according to the National Livestock Reporting Service.
Heavy lambs (22kg-plus) finished Monday at 478c/kg.
This was 6c/kg better than the previous week, but 49c/kg better than the same time last year.
Mutton continues its solid run on the back of supply worries, and finished Monday at 325c/kg.
This was better than the benchmark beef indicator, the Eastern Young Cattle Indicator, at 315c/kg, and 137c/kg better than the same time last year, when mutton was averaging 188c/kg.
"The national restocker lamb indicator (0-18kg) averaged 487c/kg, the highest since 1998," Meat and Livestock Australia reported last week.
Yarding numbers across all states are also down, squeezing prices even higher.
MLA figures show that trade and heavy lamb yardings were down 38 per cent and 31 per cent respectively last week.
Victoria yarded just 61,000 lambs and 37,000 sheep last week.
This was compared to 78,000 and 46,000 respectively the same time last year.
Sheepmeat Council of Australia president Kate Joseph said while it was satisfying that producers were receiving good prices for their sheep and lambs, the threat of losing market share with declining flock numbers was ever-present.
"We don't want to lose market share," Ms Joseph said.
"Twenty years ago there was very little export market for (producers). Now 45 per cent of the sheep market is exports. And of course there is room to expand these markets further."
Ms Joseph said SCA was keen to work out a way to arrest the decline in numbers, so farmers remained in the industry.
"I think (if these high prices and low flock numbers continue) we will see a rationalisation in the processing sector," she said. "But if we see too much rationalisation, this will take away competition."
Landmark Ballarat agent Xavier Shanahan said the strong pre-Christmas prices had continued into the New Year.
"We yarded 30,000 lambs and 15,000 sheep (yesterday at Ballarat)," Mr Shanahan said.
Continuing demand from processors, as well as smaller sheep and lamb yardings than usual, were helping keep prices high, he said.
