EXPORT lamb prices in southern Australia have come off the boil, with increased numbers and the loss of a major lamb processor last week.
Prices for heavy export-weight lambs were up to $10 a head cheaper at Victorian saleyards in the past week due to the absence of Castricum Brothers at Dandenong, who announced a seasonal closure for three months, to be followed by a review.
The company blamed the strong Australian dollar and high livestock prices.
"The strong Aussie dollar has forced all exporters to pursue large price increases in market economies which have been badly affected by the global financial crisis," Castricum Brothers managing director Gary Castricum said last week.
There was a 17 per cent drop in lamb numbers at saleyards nationally last week.
However, a breakdown of yarding numbers by the National Livestock Reporting Service's livestock market analyst Rob Millner shows the supply of heavy lambs actually increased 6 per cent from January to February at markets in southeast Australia.
"The supply of heavy lambs in January was 139,220 but lifted 6 per cent in February to 147,129," he said.
"Lately, most southern markets are made up of mainly heavy trade and heavy lambs, and not so many store or light lambs, as farmers can grow lambs out with the additional feed and are being enticed by the solid returns when selling lambs over 22kg carcass weight."
Total lamb throughput was lower in February compared with the same time last year, with heavy lambs accounting for 28 per cent of the yarding last year, compared with 34 per cent this February.
The loss of Castricum Brothers was evident at Shepparton last week and to a lesser extent at Bendigo on Monday.
"There was certainly reduced competition on Monday without Castricums competing on the heavier lambs," Elders' Graeme Miller said.
Heavy 3 and 4-score trade lambs sold from $93.60 to $130/head or 490-500c/kg carcass and averaged $2 to $6 easier.
"Swift, Australian Lamb Company and T&R Pastoral seemed to take up the slack with the heavier lambs though," Mr Miller said.
At Shepparton last week, prices for heavier lambs were up to $10 a head cheaper. Heavy 4-score lambs sold from $123 to $140 or 470-490c/kg carcass.
Although other export buyer were active at Ballarat yesterday, Castricums were noticeably absent and trade lamb prices were back $8-$10.
heavy lamb at 493c/kg at Monday's close - supermarkets are being forced to pass on the cost to consumers as their operating margins become tighter.
Coles General Manager of Meat Allister Watson told The Weekly Times this week while the cost price of lamb had risen 20 per cent, the supermarket had seen "a drop off" in sales as they had increased the retail price.
