Pasture Livestock - Sheep

Sheep Meat Industry Overview

• The sheep industry is one of colonised Australia’s oldest, dating back to the First Fleet in 1788. A consignment of Spanish sheep in 1797, destined to be forerunners of the Merino, effectively launched the industry in Australia and led to the Australian economy riding ‘on the sheep’s back’.

• The size of the Australian sheep flock has fluctuated significantly over the years in response to varying seasonal conditions, movements in wool prices and the relative profitability of other enterprises. The national sheep flock peaked in 1970 and exceeded 100 million for the second half of the twentieth century. Reduced demand for wool, drought conditions in the first decade of the twenty-first century and general industry restructuring has impacted on the nation’s level of sheep production and the flock dropped to 68.1 million in 2010 (its lowest level in over 100 years). Australia’s sheep flock was 72.6 million in 2016, although forecast to re-build to 75 million by 2018-19 . Of the total national flock, 15.6 million are in Victoria (second only to New South Wales).

• Australian lamb slaughter, as a percentage of the total sheep flock, has increased steadily over the past two decades. This reflects a shift from wool into prime lamb production in the Australian sheep industry. Farmers have experienced strong revenue growth in the past ten years and industry (lambs for slaughter) revenue reached $1.485 billion in 2020-21

• As an almost entirely paddock raised meat sector, the sheep industry’s performance is largely determined by external factors, primarily weather conditions. Continuing high prices for lamb and wool are expected to assist industry revenue growth. Export revenue is also increasing due to rising incomes and demand for lamb in overseas markets.

Sheep Meat in G21 Region

• In 2014-15 there were an estimated 565 sheep farming enterprises in the G21 region, carrying 227,800 head of sheep and lambs. This represents just 1.6% of all sheep production enterprises in Victoria. Only 22.6% of these enterprises had a total estimated value of agricultural operations (EVAO) of more than $40,000 per annum, with 77.4% having an EVAO of $5,000 to $40,000 per annum. This implies that fewer than 130 sheep farming enterprises are of a ‘commercial scale’ (both for meat and wool).

• The major export market for Australian lamb from G21 and Western Victoria is currently the Middle East, and this market has a preference for leaner carcasses (in the range 16-17 kilograms dressed), which is not a target weight that requires lot-feeding, for the majority of sheep breeds produced in Australia. In the medium term, Australia’s lamb export market growth is likely to shift towards northern Asia, and to China in particular, which would demand heavier lambs (in excess of 20 kilograms dressed) potentially creating a greater demand for lot fed animals. However, processing companies are cautious about increasing capacity to service the expanding north Asian market, due to historic variations in Australia’s ability to supply. Processing plants may be near to capacity, but there is an understanding that threats to their future viability are “only a drought away”. Business growth through improved quality, value adding, and small increases in throughput are considered the most appropriate strategies. Processors emphasise that Australia has adequate processing capacity for the livestock available, and if there is a problem with supply, further rationalisation of facilities is likely.

Regional Livestock Exchanges

Increased marketing options have led to a gradual reduction in saleyards throughput across Victoria and Australia. This has been somewhat exacerbated by the COVID pandemic when many of the livestock exchange market days were held online.

• Some producers, agents and buyers believe that selling over the hooks, selling on-farm and selling direct to abattoirs does not give farmers the same understanding and insights into the market that comes from attending saleyards.

• Some saleyards offer sales for prime lambs, sheep and mutton, store lambs and (occasionally) elite breeding stock.

• Some saleyards accept small livestock numbers (trailer-loads) from producers

• Some saleyards offer agistment for stock.

Technological changes and a shift towards paddock-to-plate.

Supply chains have multiplied the options for selling sheep livestock, and traditional saleyard days now compete with a range of options such as

• On-farm sales and mini-sales events

• Separately marketed sales of breeding, stud and elite genetic stock

• Over-the-hooks sales through processor Contract processing

• Contract processing

• Online sales

• Direct contracting by growers with processors, butchers and/or meat manufacturers

Risks in a Peri-Urban Setting

• Biosecurity risks for sheep production can be reduced by keeping the property free of diseases, pests and weeds.

• Growers should always ensure they complete or obtain a correct National Sheep Health Declaration and National Vendor Declaration when purchasing stock, offering sheep for sale, or when required in interstate livestock transport.

• Although there are guidelines for sheep production biosecurity, parts of the G21 Region are considered to be peri-urban and therefore face additional biosecurity risks and, potentially, complaints which arise from the proximity of farming operations to urban areas, rural residential estates and/or areas zoned for future residential development. Additional biosecurity issues which arise from this situation tend to mostly apply to intensive or semi-intensive livestock production (such as shedded stock, lot feeding facilities, or high-density free ranging) but can also stem from exposure to domestic pets, chemicals and transport vehicles.

• Biosecurity concerns and incompatibility issues could arise for small-scale producers if the farm operating model uses strategies which involve housing sheep and lambs in higher density containment yards for extended periods of time in order to, for example, give sheep a supplementary feeding regime, to ‘finish’ lambs prior to sale, or to give protection against predators (during lambing) or climatic conditions.

• Useful toolkits can be downloaded from https://www.farmbiosecurity.com.au/industry/sheep/

Sheep and lamb processors in south-west Victoria

• M.C. Herd, Geelong

• Australian Lamb Company, Colac

• Frew Meats, Stawell

• Hardwicks, Kyneton

• Ararat Meats, Ararat

• Midfield Meats, Warrnambool

• Cedar Meats (AustAgri Group), Melbourne

• Westside Meats, Bacchus Marsh

• Provenir Mobile Abattoir, Bannockburn

Major sheep and lamb saleyards in south-west Victoria.

•Hamilton Livestock Exchange (22% of Victorian sales)

•Horsham Livestock Exchange (9%)

•Warracknabeal Saleyards (2%)

•Wycheproof Saleyards (1%)

•Kyneton Saleyards (0.2%)

•Casterton Saleyards (0.2%)

Updates on sheep and lamb sales throughput at saleyards can be obtained from the Meat and Livestock Australia “Market Information” reports on the MLA website https://www.mla.com.au/

Major Sheep and Lamb Saleyards

• Central Victoria Livestock Exchange, Ballarat (33% of Victorian sales)

Location: 139 Sunraysia Hwy, Miners Rest VIC 3352, Phone: 03 4313 2000.

Sheep and lamb sales/auctions are held on Tuesdays

• Bendigo Regional Livestock Exchange (23%)

Location: Wallenjoe Road, Huntly, Phone: 03 5448 8111.

Sheep and lamb sales are conducted on Mondays

• Hamilton Livestock Exchange (22%)

Location: 105 Portland Road, Hamilton. Phone 03 5572 3736

Sheep and lamb sales are held every Wednesday, while in peak season (between the end of November and March) lambs are sold on a Wednesday and sheep on a Thursday.

• Horsham Livestock Exchange (9%)

Location: Burnt Creek Complex, Western Highway, Horsham, Phone: 03 5382 1542

Sheep and lamb sales are held every Wednesday

Other sheep and lamb saleyards

• Warracknabeal Saleyards (2%)

• Wycheproof Saleyards (1%)

• Kyneton Saleyards (0.2%)

• Casterton Saleyards (0.2%)

Updates on sheep and lamb sales throughput at saleyards can be obtained from the Meat and Livestock Australia “Market Information” reports on the MLA website https://www.mla.com.au/