Market Morsel: Oh Danny Boy
Lamb yarding levels in NSW saw a 52% lift last week signalling the start of Spring with volumes nearly touching 140,000 head of lamb presented at the sale yard. Meanwhile Victorian lamb yarding levels nudged over 30,000 head. We know that come mid October weekly Victorian lamb throughput can swell towards 70,000 head and by November can reach 120,000 to 140,000 head.
Victorian lamb processors will be needing to be running at capacity well before these numbers start to present themselves. However, Covid-19 regulations on red meat processor operations in Victoria mean that they are unable to increase beyond 65% capacity at present.
Victoria processes over 50% of the nations lamb per annum and 40% of its sheep. Processors in neighbouring states have been assisting with slaughter volumes during Winter, but they won’t have the workforce nor the processing capacity to clear the Spring flush of lambs without the Victorian red meat processing sector up and running at full steam. Oh Danny boy, the lambs, the lambs will be coming soon…