Mutton prices plunged at this week's sheep meat markets, dropping beyond the recent December low to now sit at the lowest level in over six years.
In contrast, lamb prices are continuing to improve.
The National Mutton Indicator ended Thursday at 308 cents/ kilogram cwt, after a sizeable 80c drop week on week, equating to a plunge of 46 per cent lower than the same time last year.
Mercado analysts report NSW as the major driver, with that state's mutton this week at 291c/kg cwt.
While not the cheapest in the country, with WA Mutton at 237c this week, it is almost a 60c discount to mutton in Victoria.
MLA analysts say it is important to remember that the indicator was receding from record highs in January 2022, therefore comparing year-on-year results does not accurately reflect average market performance.
Compared to the five-year average of 540c, the current indicator is softer by 232c/kg cwt or 43pc, a clear indication of the current market conditions.
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The mutton market continues to deal with multiple factors, placing downward pressure on prices.
Due to weaning, lower quality and cull ewes are being made available to market and prices are reflecting the lower demand due to the quality of animals on offer.
A large supply to the processing facilities is reducing buyer demand for mutton across all selling platforms and therefore placing downward pressure on price.
A drier summer affected finished quality of stock presented to market, wethers included.
Saleyard supply of mutton increasing 21pc or 4,700 head week-on-week is also an influence on price.
Upward flock growth and ample supply, mean mutton slaughter rates have begun 2023 strongly.
Slaughter volumes week-on-week rose 36pc, or 38,000 head.
In comparison to the same time last year, numbers have increased by 60,000 head or 70pc, indicative of how strong the current supply of stock is.
It was a brighter story on the lamb front with the Eastern States Trade Lamb Indicator gaining 22 this week, to settle at 735/kilogram cwt.
This is 103c or 12pc below the same week in 2022 but demand for heavy lambs continued the rally in prices with the National Indicator up another 10 to 794/kg cwt (-6pc YOY).
As forecast by MLA's October 2022 Sheep Producer Intention Survey results, lamb slaughter volumes have begun in earnest.
The survey projected that 46pc of the 2022 lamb crop will be delivered to market in the first half of 2023.
As such, slaughter volumes across most categories improved strongly.
Slaughter volumes rose 37pc, or 102,470 head, week-on-week and were higher by 18pc or 59,000 head compared to the corresponding week in 2022.
Total Yarding at Dubbo last week was up overall with a huge increase in lambs and an overall total of 28630 stock on hand.
"It was a good quality yarding with some good lines of well finished heavy weight lambs along with odd pens of fair quality new season lambs," reported David Monk from MLA .
"There were very few pens of Merino lambs though there were very large numbers of hoggets both crossbred and Merinos.
"Lighter plainer quality lambs remain tough while the better heavier trade weight lambs were around firm.
"Trade weight new season lambs sold from $135 to $208/head to average around 820c/kg cwt.
"Trade weight old lambs sold from $102 to $198/head.
"Heavy weight lambs were $6 to $8 cheaper with the 24kg to 30kg lambs selling from $183 to $238 while the lambs over 30kg sold from $243 to $283/head."
Mr Monk said a single pen of heavy weight new season lambs at Dubbo sold for $230/head and lambs to the restockers were around firm with young new season lambs selling from $70 to $130/head.
The restockers paid from $25 to $71 for White Dorper ewes and from $20 to $77/head for Merino ewes.
