Eastern states lamb supply for the year to date at MLA’s NLRS reported physical markets was 1 per cent above last year.

Competition drives trade lamb market

During winter 2009, trade lamb (16 kilograms to 22kg cwt) yardings were 47pc above the five-year monthly average, as producers responded to the strong prices, with trade lamb values peaking at 499 cents a kilogram cwt during June.

Additionally, the favourable season across much of the eastern states lifted growth rates, resulting in an increased proportion of autumn drop lambs maturing earlier.

This reduced the number of lambs available for the traditional spring flush, and contributed to the buoyant trade lamb prices in spring.

The high prices recorded over the past three months were driven by excellent consumer demand and elevated competition between processors and feeder operators.

Dollar fails to dampen heavy lamb prices

The heavy lamb (22-26kg cwt) market was also very strong throughout 2009, with record average prices and a peak of 523c/kg cwt in June.

National heavy lambs yarded for the calendar year to date were 11pc above the five-year average, as the mild winter and exceptional growth rates allowed farmers to grow lambs out to higher weights.

Despite the increase in supply, prices for heavy lambs remained high in 2009, driven by unwavering demand from a range of international markets. The high dollar has made trading difficult for export processors, yet it has failed to significantly dampen international demand. As a result, lamb exports for the year until November were up 16pc (DAFF) compared with the five-year average.