The eastern state’s goat over-the-hooks prices have remained consistently low leading into winter although there is some promise of an upturn later in the year.
Reduced demand from Australia’s overseas markets has contributed to the soft prices. This and can be attributed to a number of interrelated factors, some of which are listed below in order of significance:
- High $A against the $US – Australia’s largest export market
- “Credit crunch” – global slow down
- Cheap residual frozen mutton from 2006, 2007
- A warm winter in Australia’s major markets
- Reduced demand from Taiwan
Goat supplies over the period have been sufficient to satisfy the reduced buyer demand with the dry conditions making goats easily accessible on central watering points in extensive grazing systems. About 90% of Australia’s goat meat is derived from such systems.
Prices have been well below the average compared with the same period in 2007. Goats heavier than 16kg cwt averaged up to 157¢/kg cwt for May, which was 50¢/kg cwt below the five-year average for May. The under 12kg cwt goats finished around 30¢ below the five-year average at between 160¢ and 175¢kg cwt. Capretto goats have however gone against this trend averaging 322¢/kg cwt for May – 10% higher than the five-year average.
Month-on-month eastern states goat slaughter picked up dramatically in May largely due to the public holidays during April. Mixed species abattoirs lifted goat slaughter to offset the reduced sheep kill and avoid halting operations and losing qualified staff. The Queensland goat kill tripled from April levels while NSW and Victoria slaughter levels were up by 50%.
NSW and VIC reported May slaughter numbers of 50% and 12% respectively above the five year average. Queensland goat slaughter for May finished 4% below the five-year average, while SA goat slaughter finished 47% below the five-year average due to goat slaughter ceasing at a major abattoir in the state.