Scheme to rebuild Australia’s sheep flock; cattle hide prices continue slide
Australia’s main meat industry bodies have launched an unprecedented campaign to rebuild the national sheep flock and address the severe shortage of lamb and mutton. Meat and Livestock Australia (MLA) and Sheepmeat Council of Australia (SCA) launched Prime Time, aimed at boosting lamb production by one million lambs in 2004 and accelerating lamb and sheepmeat production over the next four years.
MLA managing director, Mark Spurr, said it was important the industry planned for the future following the worst drought in 100 years. The impact of the drought on flock numbers and fertility rates was expected to reduce Australian lamb production to 16.2 million head in 2003, he said, down 12 per cent from its peak in 2000 of 18.4 million lambs.
Mr Spurr said an extra one million lambs were needed during 2004 just to restore production to the level achieved in 2002. MLA Southern Australia Research manager, Dr Ben Russell, said a range of proven tools and best practice production guides were available to help farmers more effectively manage and boost the productivity of their sheep enterprises.
The tight lamb supply has resulted in prices continuing to strengthen across all categories. Industry sources said export lambs jumped 7 cents a kilogram in one week-on- week. The restricted supply of lambs had caused overall throughput levels to fall in recent weeks. Some major processors have closed plants until numbers increased in (the Southern) spring, while others expect their regular maintenance closure to last a little longer than in previous years.
In contrast hide prices fell on average by about $6 a hide in May bringing the average fall since January 03 to $10 a hide. It was felt hides had been overpriced in relation to the value of finished leather, and a price correction was expected. The escalating Australian dollar against the US currency, combined with the downturn in the world market also contributed to the price fall. The sluggish US and slow sales for leather in household furniture and cars were also to blame.
The impact of SARS in China had also affected leather sales. China supplied 80 per cent of all footwear imports to the US, but exports from China had slowed because people were not travelling to inspect the goods, creating a backlog of leather goods awaiting export. Predictions are for further price falls.
