Prices are improving as demand increases for spring lambs. This is influenced by fewer hoggets available now, and grass growth kicking on.
Demand for the lambs has been slow since March, but this could soon change under the current circumstances. Until now, factory agents have been focused on hoggets but demand for them over Easter and Ramadan has diminished supply.
To date, fewer lambs have appeared at marts, and prices achieved have not reflected increasing input costs.
Meanwhile, farmers who have reduced meal feeding in 2022 should now be able to switch to grazed grass to cut costs and improve their margin.
As of May this year, spring lambs throughput is back almost 6,000 head compared to the same period in 2021. So far, close to 27,000 of these animals have been processed. That’s 18% back on the figures recorded last year.
Grass growth, unexpected hikes in input costs and slow demand has put pressure on farmers who make money from the sale of spring lambs. But if sheep farmers can keep costs down, and prices remain stable, they should make better margins.
According to the Livestock & Meat Commission, base quotes as of 9 May, 2022 are:
- R3 Hoggets: 570-575p/kg up to 22kg
- R3 Spring Lambs: 610-620p/kg up to 21kg