Sheep farming in Australia is facing serious difficulties after a sharp drop in lamb prices by 75%. This is the lowest price for this type of meat in the last 16 years. Farmers report that they are unable to feed their animals and are forced to give them away for free to feed producers.
According to information from Bloomberg, over the past year, the price of lamb in the country has dropped by 75%. The cost of live sheep has also significantly decreased. In October, it was 34 Australian dollars (22 US dollars), but in some cases, animals were sold for a symbolic amount — less than 1 dollar per head.
The decline in prices for lamb and live sheep is linked to an increase in the herd size in the country, the agency notes. Three years ago, prices for this type of meat were at record high levels. Currently, the falling prices threaten the existence of livestock farms.
An even more difficult situation may arise due to the expected drought. Pasture areas are decreasing. The number of animals sent for slaughter will increase, although currently, abattoirs are already operating at full capacity, the agency points out.
“The government’s plans to gradually phase out the export of live sheep heighten concerns about oversupply, especially in Western Australia,” emphasizes the agency. The authorities have promised farmers compensation, but many have still received nothing, said Andrew Spencer, chairman of Sheep Producers Australia. Now livestock producers are asking the government to reconsider plans to ban the export of live sheep to the Middle East. Additionally, producers are proposing to introduce a special visa regime for workers from other countries willing to work in agriculture.
Matt Dalglish, co-founder of the consulting company Episode 3, predicts that the Australian lamb market will not recover until next year, and only under favorable weather conditions.
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