The Australian lamb market has gone from strength to strength over the last few years, and 2016 has been no exception.
In fact, 2016 (to 24 November) marks the fourth consecutive year of all national lamb saleyard indicators moving higher year-on-year.
Further to this, the 2016-to-date averages for most of these indicators have also exceeded the previous record levels set in 2011.
It is interesting to look at the market forces at play since 2011, when lamb prices reached their previous peak, and compare them to context of the market this year.
A La Niña event in 2010-11 saw the end of a major drought across the country, and after a decade of poor seasonal conditions the Australian sheep flock bottomed out in 2010, at 68.1 million head.
As a result, national lamb production in 2011 was reduced to its lowest level in six years, at 393,012 tonnes carcase weight (cwt).
Since then, Australian lamb production has continuously lifted an average of around 29,000 tonnes cwt each year, until reaching a new high in 2015 at 508,570 tonnes cwt.
While lamb production in 2016 (375,656 tonnes cwt for year-to-September) has contracted from recent years, what is a very positive indication of the strength of the market over this time has been the continual increase in lamb prices despite the rising supplies between 2012 and 2015.
https://www.mla.com.au/prices-markets/market-news/lamb-saleyard-indicators-higher-for-fourth-consecutive-year/