Last Friday, Wellard Rural Exports sheep buyer Murray French shelled out the record price for 1430 two-year-old Merinos wethers from West Australian producer Charlie Joyce, at the June special sheep sale at Katanning.

"We can't keep this up for the simple reason that the sheep are not around, the flock has diminished," Mr French told Rural Press after the sale.

Last week, Meat and Livestock Australia reported mutton production in Western Australia had shrunk by 33per cent year-on-year, with sheep numbers at a 48-year low, against a national production fall of 16pc over the same period.

Emanuel Exports Pty Ltd director Mike Stanton said there was big demand for sheep in the June to July period but exporters were struggling to meet demand.

"We have four vessels to fill from June 25 to July 14 and while we are getting some sheep from the Eastern states there is huge pressure to fill the vessels," he said.

"The Saudi's will buy sheep from Northern Africa and South America has similar weather to us so it is not in their supply time but if they become the new market and the prices go up they will produce more sheep.

"In the past China have had large numbers but their flock has diminished also so Australia is in the box seat."

But he warned anything above $100 was "not sustainable".

Wellard Rural Exports managing director Steve Meerwald said exporters had been struggling to fill ships for some time.

Wellard Rural Exports sheep livestock manager Gary Robinson said in the past few months there has been price resistance from clients.

"Australian industry should not be complacent in believing that our international competitors will not fill the gap if we price ourselves out of the market," he said.

The effects have already been seen with the Narrikup abattoir in Western Australia closing earlier this year.