Like most farmers, he has been enduring a slump in sheep returns this year.
He was hoping for $100/head, and when the AWN auctioneer brought the hammer down at Shepparton Regional Saleyards, the result was $122.
“That’s good, considering the state of the market,” Mr Kealey said.
Despite the good spring, producers have had to contend with prices which have fallen by almost 50 per cent since late last year.
Mr Kealey, and many others, have resorted to selling more ‘over the hooks’, direct to abattoirs, where they can get a confirmed price before delivery.
One upside for producers is the availability of cheaper re-stockers, although that opportunity is now passing as prices recover.
“I picked up some from Benalla for about $85/head, but I don’t think I’ll get that again for a while,” Mr Kealey said.
He’s noticed the talk about supermarket prices for lamb remaining high, but to him, it’s academic.
“We’ve been killing our own (for the table), but I’ve had just about enough lamb to last me for a while.”
One lamb producer told Country News they were getting about $200/head last year, but that had dropped back to about $135.
“The only saving grace has been the opportunity to buy replacements,” the farmer said.
Shepparton Elders agent Andrew Kyle said while prices had declined since earlier this year, there was a recovery over the past six weeks, which is reflected in National Livestock Reporting Service data.
While livestock producers have had to cop the lower prices, supermarket prices for lamb have remained high, prompting some calls for an inquiry into food prices.
18°C