Export scramble lifts sheep prices
Livestock exporters are fighting to fulfil burgeoning Middle East demand for sheep.
Industry observers have reported fierce competition between exporters, all desperate to fill ships from the State's dwindling flock.
Last week, Livestock Shipping Services shipped about 150,000 sheep in less than two weeks to the Middle East.
Around the same time, rival Emanuel Exports secured about 76,000 head of sheep, which are yet to be loaded.
Frantic LSS buying at saleyards last week to secure numbers, pushed the average price for heavy wethers (24.1kg-plus cwt) to $99 a head, with the price going as high as $110/head at some sales.
The market effect of the Emanuel buy-up has been difficult to analyse, because the company traditionally sources livestock direct off-farm.
Seasonal conditions and demographics have driven live export buyers to consider all categories of sheep, paying good prices for heavy ewes, hoggets, cross breeds and wethers.
However, Al Jabri export manager and former WA Livestock Exporters Association chairman John Edwards warned export markets would not tolerate heavy price increases and unstable supply.
Mr Edwards said he blamed the tight market on traditional factors of the autumn sheering season and local supply competition, combined with harsh feed conditions and continued steep demand from the Middle East and other markets.
"The dry and hot summer has resulted in the flock losing a lot of condition. You can't buy half-finished sheep," he said.
Mr Edwards said exporters may consider securing supply from the Eastern States if the local price escalated further.
"Our customers don't have to buy from our market and will source products from elsewhere if the price becomes too high," he said.
Kojonup sheep producer and LSS supplier Neville Parker said demand for exportable quality sheep would intensify if current seasonal conditions continued for too long.
Mr Parker said producers would face water shortages by the end of April if there was not a normal seasonal break.
"Mutton is $1 per kilogram cheaper in WA than the Eastern States, but the price will continue to rise," he said.
Mr Parker said producers could take advantage of the current market to extract even higher prices than currently on offer from exporters and local markets.
"All they have to do to push the price up is not sell their sheep," he said.
"LSS purchasing such a large amount of livestock from the WA flock put an unusual amount of pressure on markets, shearers and transport."
Meanwhile, Wellard ship MV Ocean Drover is rumoured to be making its return to water, after undergoing almost five months of repairs in Singapore.
The MV Ocean Drover sustained about $10 million damage, after it caught fire while docked in Fremantle in October last year.
Emanuel client Kuwait Livestock Transport and Trading has reportedly chartered the Wellard vessel for its first voyage after the repairs.
KLTT's move has been reportedly driven by the need to increase its export numbers by about 70,000 head, after repair delays with its own vessel.
It is expected the charter will depart Fremantle, headed for several Middle East destinations.
WA live export buying activity *
