Article Summary: Australia is famous for sheep and mutton farming, but the meat industry is currently facing a crisis, with prices at their lowest level in 16 years. This is current as of October 2023. Sheep Producers Australia has also recently acknowledged the tough times you, as sheep farmers, have faced for a few years. They have emphasised the challenges, pointing out that some farmers see little to no profitability. They’ve seen evidence that, shockingly, some farmers have had to give away their low-quality sheep to pet food producers. This article explores why the prices are so low and how you can weather the storm by finding support and adopting grazing changes on your farm.
Australia is famous for sheep and mutton farming, but the meat industry is currently facing a crisis, with prices at their lowest level in 16 years. This is current as of October 2023. Let's find out why the prices are so low and how you can weather the storm by finding support and adopting grazing changes on your farm.
The evolution of lamb and mutton prices in Australia
In the past year, the cost of mutton has plummeted to a staggering 75%, hitting its lowest point, as reported by Meat & Livestock Australia. Not only that, but sheep prices have also taken a plunge.
Australian sheep farmers, this downturn has left many of you grappling with a financial crisis. We’ve seen some reports where meat was sold for less than a dollar each.
Sheep Producers Australia has also recently acknowledged the tough times you, as sheep farmers, have faced for a few years. They have emphasised the challenges, pointing out that some farmers see little to no profitability. They’ve seen evidence that, shockingly, some farmers have had to give away their low-quality sheep to pet food producers.
What are the significant factors behind falling prices?
As a farmer, you’d be well aware of the sudden fall in meat prices. A few years ago, you enjoyed record-high prices for mutton and lamb. So what is the reason behind this sudden drop?
The supply of lamb and mutton is the leading cause of this problem. It has typically rained more than usual for three consecutive years in Australia. This resulted in ample food and grass for livestock and allowed you to increase the size of your lamb herds. Australia has more or less 79 million sheep, three times more than the entire country's population, the highest total sheep count since 2007.
If supply outweighs demand, then prices fall.
Additionally, the Australian government has recently planned to stop exporting live sheep by sea, albeit gradually. This new policy might have caused some unease, but you’re not the only one. It’s felt by farmers nationwide and several key animal welfare organisations.
What would you do: reduce your sheep numbers via culling or opt for air exports? Or slaughter the sheep on-site before shipping them? It’s a tough call.
What can you do about the glut of sheep?
You need convincing strategies and practical solutions to help you receive support, diversify your income, and manage your costs.
Looking after the well-being of farmers
First and foremost, you need assistance managing this crisis. Australian farming bodies are now working to empower farmers to make informed decisions and effectively manage their finances by offering the following services:
Financial guidance and assistance:
You need access to knowledgeable financial advisors and valuable resources to navigate the economic challenges. These experts can offer insights into budgeting and cost-cutting techniques. They can even inform you about potential financial assistance programs available.
Mental health resources:
Recognising the importance of prioritising farmers' mental well-being during these challenging times is crucial. You should have access to counselling services, support groups, and educational resources. In this way, you can be well-equipped with the necessary tools to cope with the stress and uncertainties of economic downturns.
Diversification opportunities:
You should look for new avenues to generate income and innovative farming methods that enhance traditional sheep farming. By incorporating these alternatives, you can expand their sources of revenue and break free from relying solely on one market. This diversification strategy not only safeguards you against potential risks but also opens up exciting opportunities for growth in the agricultural sector.
The impact of grazing decisions
Making good grazing decisions will help you to keep your business sustainable. This will also help to enhance the optimal flock health and control the prices in the long run.
Rotational grazing:
A rotational grazing system will aid pasture recovery and maximise forage nutritional value. This technique diminishes the need for supplemental feeding by preventing overgrazing and promoting healthier pastures.
Pasture monitoring:
Check pasture conditions frequently to identify areas of excessive grazing or underutilisation. Keeping track of pasture growth enables you to adjust stocking rates and move livestock economically, ensuring that available feed is used properly.
Drought preparedness:
You should create emergency drought plans, including water management strategies, different forage sources, and early action steps. Planning for shortage seasons can reduce the impact on grazing operations.
The challenges confronting Australian lamb and mutton farming reveal a complex interplay of multiple factors.
These factors range from an unexpected drop in prices and oversupply to the impact of weather patterns and government policies. To face this economic uncertainty, you need to follow specific strategies.
At Pasture.io, we understand that farmers need our support more than ever. While we are proud of bringing you the world’s first satellite and pasture management apps, we’re also driven by helping our community, too. We encourage you to follow and read our library of blog articles, jam-packed with helpful info for making your farming life easier and more profitable. We also offer cost-effective ways to adopt agtech on your farm so you can easily make farming decisions and use your resources most efficiently. No matter what, we’re here for you.
Head to our website to find out more about our solutions, and feel free to chat with us in the chat box on the screen!
Until we meet again, Happy Farming!
- The Dedicated Team of Pasture.io, 2023-12-07