FARMERS in Australia's eastern states are rebuilding their sheep flocks faster than expected making the most of seasonal conditions.
Meat and Livestock Australia chief economist Tim McRae today released the mid-year sheep and lamb projections which showed supply is expected to increase and lamb prices were returning to a more sustainable level.
"Improved seasonal conditions have resulted in faster flock rebuilding across the eastern states than was forecast earlier in the year, with flock numbers revised upward to now reach 70.8 million head in 2011 – an increase of 4 per cent," Mr McRae said.
He said flock rebuilding was expected to continue over the next five years and would reach 75 million head in 2015 from the low of 68 million head in 2010.
"Intentions to rebuild have also been boosted by the recent improvement in wool returns – a positive for both meat and wool flocks over the next five years," said Mr McRae.
Drought conditions are taking their toll in Western Australia where the flock bucks the rebuilding trend.
According to MLA, the national lamb slaughter will decline 3 per cent on 2010 levels to 18 million head.
Sheep slaughter will bottom out at 4.8 million head in 2011 due to rebuilding intentions.
Lamb export volumes were forecast to increase by 2 per cent in 2011, totalling 158,000 tonnes swt.
