During March, prices dipped to 163¢/kg cwt for medium weight (12-16kg cwt) goats but have improved steadily to reach 187¢/kg cwt in October. The recent modest correction has coincided with a weaker A$ which, after peaking at more than 98.5 US cents in July, is now trading in a range from 60-70 US cents, although the extreme volatility is not helping trade.
The past five years have been a rocky road for Australian goat prices. After reaching a high of 279¢ during August 2006 for medium weight goats on the back of solid demand and reduced supply, prices have endured a consistent softening trend. Rapid price falls were experienced during the spring of both 2006 and 2007 and again in late February and March this year. Softer overseas demand, higher numbers and a strong A$ contributed to this softening.
Despite the weaker prices, the supply of goats has remained relatively stable with goat slaughter levels now running at near record levels and showing some signs of an increasing trend. This may be tempered however by soft demand in Australia’s major markets; the United States of America and Taiwan.
The weaker exchange rate is going some way to offsetting soft demand and supporting prices, hence the price rise over the past month. Most price quotes currently stand between 180¢ and 205¢/kg cwt.