Record year for Australian goat industry as price pressure remains

According to recently released Australian Bureau of Statistic data, slaughter increased by 41pc from 2022 to more than 2.35 million head while production increased by 30pc to 28, 463 tonnes.

It puts 2023 above the previous production records set in 2014, when slaughter reached 2.13 million.

Victoria contributed 47pc of the total slaughter, processing more than a million head in 2023.

MLA category and market insights analyst Emiliano Diaz said volumes had been increasing since the twenty-year low seen in 2020.

"At the end of 2022 we had an issue with demand because the prices were a bit high but as soon as prices went down, demand started slowing from many countries," he said.

"China for instance saw their opportunity and started buying but other markets as well like Trinidad and Tobago, they started jumping back in the trade because the price is very favourable for them.

"If the price stays like this, the demand will keep going but of course the producers on the other side are not in the best position at the moment."

Goat reached an average $9.20/kg in mid-2022 before beginning a downward glide that saw prices fall to below $2/kg.

December's MLA over-the-hooks report showed an average price of $1.69/kg according to the body, with heavier goats receiving prices around $1.95/kg while lighter goats were going for as low as $1.20/kg.

The recent low pricing coupled with zero tariffs has China to emerge as the second-largest market, taking 2,308 tonnes of goat meat.

Live export volumes surged to 18,356 head in 2023, marking the second-largest volume over the past five years, with an increase of 13,487 head.

Carcase weights ranged from 14kg to 17kg, with the average carase weight dropping back by 1.3kg to 15.63kg.

Mr Diaz said there had been reports that prices had bottomed in recent weeks and could be recovering after the pricing correction of the last

"The goat goes mostly to the US, between 60 to 65pc goes to the US historically... what's happened in the US is the most important to the market and during that time [when prices peaked] it was too high for consumers and they stopped buying," he said.

"As soon as the price went significantly down they started buying it again, last year the exports to the US started very low but then ended up 16pc up on 2022.

"Once we go between lamb and mutton, that's the sweet spot for goat prices."