2023 September Newsletter

As I write, the livestock markets continue to flounder. Coming off record high prices, coupled with favourable seasons and low interest rates, we’ve now witnessed the biggest collapse since the removal of the reserve price wool scheme in 1991.

The collapse in the livestock markets can’t be pinned down to one factor, multiple factors are in play. The national breeding ewe flock has reached its highest level since 2007 at 46.14 million.  

In the 2022 calendar year Australia produced the most lambs on record. The past quarter of 2023 recorded the most lamb meat ever produced in a quarter at 149,385 tonnes.

Mutton slaughter for the same quarter was 2,550,700, the highest since 2019.

These numbers, the finalising of the national flock rebuild and the global economic situation are some factors affecting the current value of sheep.

However, there are positives.

These increase slaughter rates means demand for our sheep meat products remains high. Although production and slaughter volumes are forecast to lift sharply over the upcoming months, MLA predicts that the global supply dynamics ensures Australia will continue to strengthen its grasp as the worlds largest sheep meat exporter.

The sell off will mean a decline in the national flock and therefore less ewes joined to lamb in 2024.

The wool market has also dropped by approximately 20% over the last few months. Unfortunately we still have China buying 82% of Australia’s clip.

However, there is a growing preference amongst consumers for natural, biodegradable, sustainable and renewable materials. The forecast for global wool demand from 2023 to 2030 is an increase of 4.9%.

As I’ve said before, this is where the Dohne shines … lower production costs, high fertility, doing ability, quality fine apparel wool, plain bodied, mules free, high growth rates and a prime lamb carcase.

On a more positive note Macquarie has recorded its most successful year to date.

• Over 500 rams were sold to 5 states
• Unprecedented Success at the 2023 Australian Sheep and Wool Show
• Leading Performance in the Balmoral Merino Sire Evaluation

We look forward to catching up through the sale season.

John Nadin

MACQUARIE DOHNES’ RECORD SHOWING AT THE 2023 AUSTRALIAN SHEEP & WOOL SHOW