Softer yardings of heavy lambs in 2021 have had no apparent impact on increasing the price for heavy lambs over the hooks (OTH) as all states experience easing prices.
And even though slaughter rates were down for the start of the year, the industry is now in the throws of an uptick.
According to Meat and Livestock Australia OTH prices for heavy lambs in Victoria are operating below 2020 levels with prices currently 12 per cent or 89 cents below 2020 levels.
On Tuesday the MLA eastern states daily indicator has heavy lambs sitting at 798 cents per kilogram, but at the same time in 2020 the price was operating at 850c/kg.
In South Australia, the indicator this week for heavy lambs is at 768c/kg, 35c down on the same time last year.
MLA's market information manager Stephen Bignell said consecutive weeks of higher heavy lamb yardings in early 2021 to March reflect Victoria's brilliant summer rainfall.
"Currently, the softer price compared to 2020 could be attributed to lower supply volumes from softer export demand as economies continue to recover from COVID-19," Mr Bignell said.
"One reason for the softening prices is we have seen lamb slaughter really uptick and outperform 2020 since early April, especially during the months of May and to date, in June.
"That supply of lambs are making its way through to processors."
Since the second week of April 2021, lamb slaughter has exceeded 2020 levels.
And according to MLA in early April 2020 Victoria was slaughtering 139,000 head of lambs and on the same date this year slaughter was at 133,000 head.
"For the first three months of the year, slaughter was behind 2020 levels, but in the second quarter lamb slaughter has been tracking above 2020 levels," Mr Bignell said.
"So what we are finding is even though yardings are down, they are still finding their way to the processors."
He said although all kinds of lambs are being slaughtered, there are more heavier lambs as improved conditions last year lift carcase weights.
"The lambs coming through are all heavier," Mr Bignell said.
"And overall there is more supply coming through, and obviously with more supply, even though we are not seeing that increased supply in saleyards, we are seeing not as tight a supply through processors."
He said MLA expects higher slaughter levels to continue until the end of the year due to the expected higher lambing rates in 2021 and no COVID-19 related processor disruptions this year.
"And along with the expected larger lamb cohort coming through, global economies should continue their recovery," he said.
