Average prices during 2004, 2005 and 2006 escalated year by year, from 212¢ in 2004, through to 251¢/kg cwt in 2006 for 16-20kg cwt goats. In contrast, average prices in 2007 and 2008 were lower, averaging 214¢ and 169¢/kg cwt, respectively, for medium weights.
The reduced rates for goats over the past few years have been due to a combination of higher supplies (with dryer seasonal conditions in the interior regions causing more goats to become available) and weaker demand, due to reduced processor competition and weaker export demand. The reduced export demand from the beginning of 2007 to mid way through 2008 has been predominantly due to the increase in the A$ versus the currencies in the main exporting markets of the US, Indonesia, Malaysia and the Caribbean.
On the supply side, north west Victoria, northern South Australia, western New South Wales and western Queensland have had successive years of drought. This has caused a larger turnoff of goats, with slaughter levels in 2008 reaching record levels. Eastern states goat slaughter numbers during 2008 were 25% higher than during 2007 and 10% above the five year average.
Prices in the first week of 2009 opened at stronger levels, continuing the dearer trend that has been evident since mid-March last year. The higher prices have been assisted by the dramatic fall in the A$ since the latter half of last year. This year there have been reports of steady demand from overseas while contributors have said that the supply of goats is adequate. Quality is good with a greater supply of heavier goats compared to the same time last year. Capretto prices have risen, which is typical for this time of year.