May 15, 2023

Australian livestock prices plunge

Livestock prices in Australia experienced a sharp decline this week as saleyards across the nation saw a continuous influx of cattle and sheep, Australian Broadcasting Corporation reported.

The national mutton indicator, which had been steadily rising since March due to export demand from China, plummeted by approximately 20% this week. The Eastern Young Cattle Indicator (EYCI), considered the cattle industry's benchmark, now sits at a staggering 48% below its record high achieved in early 2022.

Even at the prestigious Herefords Australia National Show and Sale in Wodonga, New South Wales, the prices offered for quality bulls saw a decline. Ian and Anne Galloway from Cootharaba Herefords in Roma Queensland purchased the top-priced bull for AUD 75,000 (~US$50,100; AUD 1 = US$0.67), significantly lower than last year's top price of AUD 130,000 (~US$86,000)

Ripley Atkinson, a senior market analyst at Meat and Livestock Australia, said the primary reason for the price decline is the increased supply over two consecutive weeks.

He said supply is the driving factor, and sustained numbers across all saleyards for two weeks has put prices under pressure.

After some strong seasons, numbers on farms have improved, and buyers don't need to compete as heavily to access stock, so they can be more selective, he said.

While prices have fallen, Atkinson highlighted that demand from export markets remains robust, with volumes of beef, lamb, mutton, and goat meat surpassing last year's figures.

-      Australian Broadcasting Corporation