Strewth, those lambs are dear!

30-08-2010 | Hugh Stringleman

Australian lamb prices are reaching for the skies with $200/head and more made through New South Wales saleyards last week - news which is making New Zealand producers envious and possibly resentful.

Farmers John and Pene Fowler, near Wagga Wagga, have re-set Australian price records three times this month, with their 80kgLW, 11-month-old Poll Dorset-cross lambs.

Last Thursday they reached $203, the highlight of a yarding of 35,000 lambs in one day, which is similar to NZ's present daily kill through all plants still operating at the end of the season.

But NZ Lamb Company and Alliance Group chairman Owen Poole says NZ and Aussie farmers are getting $5-plus on a cents/kg CW basis, in their respective currencies.

He is uniquely placed to see both sides of the Tasman, as NZ Lamb Company has four Australian shareholding companies which export to North America, along with Alliance, Silver Fern Farms and ANZCO.

"Australian farmers by and large get more for their lambs because they are bigger, not because the c/kg price is higher," he said.

About 60% of the Aussie lamb crop is consumed domestically, with savings on shipping, and no exchange rate or market risks, and these tend to be 18 to 22kg CW. Still larger carcases go export.

In the North American market the bigger Australian middles, loins or racks bring premium returns over NZ equivalents, because the eye muscles are larger.

"But that is only 15% of the carcase and for the other 85% Australian returns are less than NZ, because of the larger cuts," Poole said.

While he didn't know of any export markets for 35-40kg CW lambs, in whatever form, Poole commented, "They don't get that big for nothing."

"Perhaps our farmers are better rewarded to grow 1.25 lambs to 17 or 19kg CW than Australians spending much more feed and time growing carcases in the 20kg or heavier range," he said.

Australian companies might encourage heavyweight lambs for the bigger skins and offals at the standard processing costs, which he said were comparable on both sides of the Tasman.

"But lamb carcases can get too big for the export customers, who just won't buy them."

Wagga Wagga agent Greg Hulm, who has sold the Fowler lambs for years, said they were going export, but he didn't know to which countries.

The Poll Dorset-sired lambs from Border Leicester Merino-cross ewes had benefited from a very growthy autumn and winter on grass and lucerne, finished on green-feed barley. The Fowlers lamb three times a year to spread their drafts and specialise in the heaviest weights they can achieve.

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