Sheep slaughter down again

Sheep supply is generally low through June-August but, this year, slaughter levels are well below those of previous years. It would appear that fewer sheep are being sold direct as saleyard throughput remains at similar levels to recent years. Some centres continue to pen unseasonably high numbers, which has been offset by much smaller yardings at other markets, reflecting the patchy seasonal conditions. The ongoing drought has prolonged and deepened the flock liquidation which first began following the wool price fall in the late 1980s/early 1990s. The subsequent lack of sheep supply is a major factor behind the buoyant market. Recent sharp falls in skin values and appreciation of the A$ appears to have had little impact on this suppliers' market. With supply down considerably, particularly in NSW and Victoria, processors are being forced to vigorously compete with graziers and live exporters when securing numbers. NSW slaughter is currently 33% below its lowest level last year, while Victorian slaughter is 14% lower than the seasonal trough in 2002. Sheep prices have continued to climb, with light mutton gaining up to 23&icent;/kg cwt. A large number were light 1 and 2 score ewes that averaged 168&icent; and 201&icent;/kg cwt, respectively.