IT IS the retail cost of beef and lamb, not the live export ban, that is to blame for the slump in saleyard values.
T and R Pastoral's head of livestock buying Paul Leonard said prices were getting far too dear for "the housewives".
Mr Leonard's comments come in the wake of the Eastern Young Cattle Indicator falling 4.5 cents over the past week to close at 373.75c/kg carcass weight; its lowest point since prices took off in mid-November and peaked in March at 424.25c/kg cwt.
Prices for all eastern states lamb indicators have fallen from the high levels experienced over the past few months. Tradeweight lamb prices eased 12c/kg, to average 524c/kg and heavy lamb prices slipped 23c/kg, to average 490/kg.
Mr Leonard said if the live export ban was not resolved soon, it would be 12 months before the full impact was felt on southern beef prices.
That was not the view among vendors and buyers at last Friday's big yarding of 3535 store cattle sale at Euroa, where prices for young steers were down $25-$50 on comparable early-June sales.
Wahroonga lot feeder Lachie McKenzie said the live export ban was causing nervousness and uncertainty.
But Steve Harrington of Elders Euroa said any easing in the market was due to an over-supply of cattle.
He said he was optimistic as a result of the the buying strength at Euroa from five lotfeeders, which between them, accounted for almost half the yarding.
"They must be confident the market is going to settle," Mr Harrington said.
But Mr Leonard said meat prices, particularly lamb, had become too dear for consumers.
"Even in the export markets we are seeing a reaction, as people seek out cheaper sources of protein," he said.
Mr Leonard blamed the supply forecasts for sharp rise and fall in lamb prices.
"We were led to believe by the agents in December that there would be a shortage of lambs in autumn because most farmers had opted to sell in spring when the market was buoyant, rather than hold them over. Which is why we were offering forward prices up to $6.50/kg for July delivery.
"It appears some thought the market would go to $7/kg. But now lamb prices have slipped $2, down to $4.50-$5/kg, and skin values have eased $12-$15.
"Housewives can't afford $40 for a leg of lamb. It has to come back to $25 if we want them to stick with lamb."
