Good rains across much of eastern Australia and widespread flooding in Queensland did little to increase prices despite tighter supply due mainly to difficulty in trucking livestock. Subdued overseas demand was the main reason for the soft prices.
Under 10kg carcase weight (cwt) goats averaged from 100¢ and 147¢/kg cwt in January, while goats over 10kg cwt averaged between 178¢ and 190¢/kg cwt.
February OTH goat rates told a similar story with overseas demand remaining subdued; not helped by the high A$ and difficult economic conditions in the United States of America (US) and Taiwan – Australia’s largest goat meat markets.
Further increases in the A$ in early March to record levels caused a further downward movement in goat rates. Goats over 10kg cwt averaged between 162¢ and 177¢/kg cwt.
Looking ahead, the market is expected to be static through March however a further appreciation in the A$ will exacerbate the difficult trading conditions. Furthermore, March is considered to be a quiet month for trading.
Anecdotal evidence suggests that traditional goat meat consumers in the US, predominantly those of Hispanic and Caribbean decent, are among those particularly hard hit by the tightening in the sub-prime mortgage market. As a consequence, these consumers are opting for cheaper proteins such as local chicken. The high A$ means that Australian goat meat is still relatively expensive.
On the bright side the domestic market and the live export market, especially the trade to Malaysia, remain comparatively strong.