April's sheep market update

Highlights for sheep

• Australian lamb markets have shown relative stability throughout March, easing slightly through the latter half of the month before finishing strongly. The National Trade Lamb Indicator is now at 803 c/kg, marking marks a +2.4 per cent increase from the end of February and up +6.6 per cent compared to the five-year average. Prices continue to be supported by strong processing capacity, although key sheep producing regions in South Australia and western Victoria remain relatively dry which is limiting upside.
• Lamb supply has remained elevated throughout March, with the average weekly slaughter totalling 492 thousand head. Average processing rates in March were slightly lower than that of February, however, this is mainly due to public holidays. Processing rates were still up +5.7 per cent compared to March 2024 and 27.2 per cent above the five-year average for the month. Supply is expected to remain heightened throughout April but expected to dwindle as we get closer to the middle of the year. This is expected to coincide with a tightening in supply of mutton.
• Lamb prices are expected to ease in April as the market adjusts to the implementation of tariffs from the US, however, continued strong processing capacity and tightening supply are expected to limit downside. A strong autumn break across South Australia and western Victoria will play a big role in easing supply pressure.

Joe Boyle

Agricultural Analyst

Joe is our Insights specialist for sheep and wool industries. He hails from a cropping and sheep farm in northwestern Victoria and has studied a Bachelor of Agriculture at the University of Melbourne.