Livestock prices improved at most Australian saleyards this week, but it was the processor demand for mutton and cows that really stood out.
Meat and Livestock Australia’s (MLA) National Livestock Reporting Service showed beef processors from southern Australia were on the hunt for cows and willing to travel interstate to get them.
At Dubbo, the cow market was described as “very strong” with prices lifting by up to 30 cents per kilogram thanks to extra competition from southern export buyers.
Meanwhile, the cow market “was the highlight of the sale” at Wodonga on Monday, with heavy cow prices averaging $3.30/kg despite a larger offering.
The National Processor Cow indicator lifted by nearly 10 per cent.
Processor cows were in demand this week. (ABC Landline)
Why are prices increasing?
Stone X meat industry analyst Ripley Atkinson said processors were “scrambling” for cows this week and southern processors had made their way to Dubbo to lock in numbers.
“It won’t be long before they continue to push north. This should provide further support for the cow market,” he said.
“There was a big yarding of cows this week, but the market still picked up strongly.”
As reported previously by Landline, the United States’ love of hamburgers and historically low cattle herd continues to push prices higher for lean beef.
In Australian dollar terms, the US imported beef price (90CL) is at record highs, going well above $10/kg.
It could be argued saleyard prices for cows, while on the up, are still undervalued compared to the export rate to the US.
US imported beef prices are surging. (ABC Landline)
Mutton ‘going bananas’
Speaking to the Tasmanian Country Hour, livestock reporter Richard Bailey said there was “positive news on all fronts” at saleyards this week and mutton prices were running hot.
“The mutton job is starting to go bananas again,” he said.
“We’ve been saying it for a while, but I think there’ll definitely be a shortage of mutton going forward. It’ll just be interesting to see how much the exporters can pay.”
The National Mutton Indicator jumped 10 per cent this week to 370 cents per kilogram carcass weight, which is historically high, but still behind the 480 cent mark reached in 2024 and the record 701 cents per kilogram reached during the start of the coronavirus pandemic in 2020.
Mutton jumped this week, even in WA. (ABC Landline)
China is Australia’s largest customer for mutton and its appetite pushed exports to a record 255,098 tonnes last year, which was 22 per cent higher than the previous record.
That trend is continuing in 2025.
Last month Australia exported 19,776 tonnes of mutton, which was 17 per cent higher than January 2024.
Mutton prices even improved in Western Australia this week, but prices there remain well behind the eastern states.
For example, heavy merino ewes at Muchea (WA) this week sold for up to $90 a head, while at Wagga Wagga (NSW) the same type of animal fetched up to $170 a head.
What will this mean for domestic prices?
Australians prefer lamb over sheep meat, which is why about 95 to 97 per cent of Australia’s mutton gets exported.
So a price rise for mutton is good for producers and should not hurt consumers.
Likewise, processor cows are slaughtered for the lean beef/hamburger trade, which is mostly an export market.
But if several Senate inquiries in 2024 taught us anything, it is that supermarkets sometimes raise prices whether commodity prices go up or down.
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