A CRITICAL shortage of sheep to kill has forced mutton prices to record levels.
In stellar times unheard of for the sheep industry, the national saleyard indicator closed last week at 345c/kg - slightly higher than the Eastern States Young Cattle Indicator.
Adding to the producers' returns are high values for sheep skins, with the National Livestock Reporting Service regularly quoting Merino skins as selling for more than $20, with some fetching up to $23.
The Victorian mutton indicator closed last week at 378c/kg carcass weight, but had been as high as 383c/kg the previous week.
NSW producers are also reaping the rewards, with the state's saleyard indicator closing at 346c/kg carcass.
A year ago, mutton prices were averaging 192-216c/kg.
The NLRS said "ample numbers sold over 400c/kg carcass weight" at Dubbo in NSW on Monday, with one of the best prices of 413c/kg carcass paid for heavy Merino wethers. This equated to $120 a head.
Elders Goulburn agent Steve Ridley assessed seven to nine-year-old Merino ewes for an AuctionsPlus sale last week, and thought the ewes with an estimated carcass of 21kg would make about $70.
"We had a reserve of $60 on them and thought they would make $70 but they ended up making $80, and sold for 391.3c/kg carcass weight," he said.
Mr Ridley said processors seemed willing to "get stuck into them (mutton sheep) at the moment". "It's amazing stuff - some markets are quoting 400c/kg-plus for sheep," he said.
Another good return for mutton on Auctionsplus was achieved by Launceston Roberts Ltd agent David Bennett, who sold cast-for-age ewes at 427.8c/kg including the skin, or $77.
Mr Bennett said he had spoken to the processors who bought them, who said they had "paid enough for them".
"In Tasmania, the situation is the same as in the mainland - in the past three years we have all sold more sheep than normal due to the droughts and there's a lack of numbers and no supply for processors," he said.
Processors are now going head to head with producers for suitable sheep, according to Meat and Livestock Australia, which said restockers were underpining the mutton market. But processors were showing just how much they wanted sheep for slaughter.
"With February mutton slaughter hovering at historically low levels, export processors across the country are paying top dollar in order to secure mutton supplies," MLA said.
"A run of heavy first-cross ewes fetched $145/head at Bendigo last week to average close to 348c/kg carcass weight, while a pen of second-cross wethers sold at Mt Gambier made about 340c/kg carcass weight."
