![Lamb shortage drives price rise Lamb shortage drives price rise](/images/transform/v1/crop/frm/silverstone-agfeed/2013742.jpg/r0_0_399_266_w1200_h678_fmax.jpg)
TIGHT supplies of finished lambs across all lamb-producing states has helped push lamb values up by about 50c/kg dressed over the past month.
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It is welcome news for Queensland lamb producers who endured a significant downturn in returns throughout 2012, when lamb prices fell to as low as $3.30/kg dressed.
According to MLA's National Livestock Reporting Service, the eastern states restocker lamb indicator was 43c higher, at 393c/kg cwt as of last Thursday.
Merino lambs had lifted 48c to 361c/kg cwt, while light lambs increased 30c to 390c/kg cwt.
The eastern states trade lamb indicator improved 44c to 431c/kg cwt, while heavy lambs gained 37c to settle on 429c/kg cwt the highest weekly prices since September last year.
T&R Pastoral is Queensland's largest lamb processor, killing 1100 lambs a day at its Wallangarra plant. The company also has processing plants in South Australia and Tamworth, NSW, where 5500 lambs are processed each day.
T&R Pastoral livestock manager Andrew Jackson said T&R Pastoral were currently paying $4/kg dressed for 18-32kg lambs compared to $3.50/kg for the same article five weeks ago.
"There is definitely an upward trend in the market at the present time," he said.
"That started before the rain but the rain in Queensland and NSW has pushed it along somewhat in recent weeks. If we didn't have such a strong Australian dollar I am sure there would be an even bigger jump in prices but unfortunately that is still constraining us."
Mr Jackson said the recent market upturn had been driven by a shortage of lambs brought on by a combination of factors.
"There were large numbers of lambs that were prematurely killed when conditions were still very dry through southern Queensland and western NSW," he said.
"The market for those lighter lambs, about 12-16kg dressed, has been very strong because it has been filling a shortage created while the live export market has been subdued.
"With so many younger lambs taken out of the system we are now seeing a shortage of those larger, finished lambs. Also, no one has been grain feeding or preparing lambs on crops because lamb prices didn't really warrant it.
"Grain prices have also been stronger so a lot of people who normally value-add their grain by producing meat just opted to sell their grain last year instead.
"We don't really know what numbers of lambs are out there but all this has combined to create a shortfall and that's why we have seen a spike in the market."
Mr Jackson said T&R Pastoral were actively seeking lambs for both Wallangarra and Tamworth.
"The grid for Tamworth is 18-32kg dressed but for Wallangarra we really want to see a 22kg carcase and the grid for there is 18-24kg," he said.
"We are looking for lambs now."
Dale Kirchen from Ray White Livestock at Longreach said the mutton market also lifted slightly this week with the best wethers making $1.70c/kg dressed at the works while Merino ewes were making around $1.40c/kg dressed.
"All in all I think we will see a positive change in the job over the next few months providing it keeps raining," he said.
"Just in the last few days I've had a couple of phone calls from restockers which indicates just a little bit more activity in that market.
"There are still a lot of lambs to come off grain in the south though, and we will have to see how that plays out."