Goat OTH in new territory
30 May 2019
This week, the eastern states goat over-the-hook (OTH) indicator rose 134¢ to 932¢/kg carcase weight (cwt), 83% above year-ago levels and a new high for the indicator.
Prices have increased 352¢ from the start of 2019, with processors lifting grid prices as demand factors continue to outpace domestic supply.
The market responded to the increase in prices, with slaughter increasing 32% compared to last week, at 22,600 head. Eastern states goat slaughter has now risen to be in line with the five-year average for the first time this year.
Goat slaughter levels can often be volatile – as harvesting operations muster opportunistically, it’s difficult to deliver consistent numbers. The dry conditions across the eastern states over the last month will have assisted goat harvesting operations, as well as the strong price incentives.
The outlook for future goat supply remains uncertain as a result of the prolonged dry in key supply regions. For the first quarter of 2019, goat production totaled 6,100 tonnes cwt, 29% below the same period in 2018.
© Meat & Livestock Australia Limited, 2019
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