Sheep values have all fallen substantially due to low lamb and mutton prices. Demand from China slowed significantly, whilst at the same time more lambs were born in spring increasing the number of prime and store lambs for sale, leading to lower values.

Sheep meat values are now well below the 5-year average, with many sheep farmers having their worst season in decades due to a combination of low commodity prices, drought, high interest rates and stubbornly high on farm inflation, even in the face of aggressive cost cutting.

Wool markets remain uncertain with forecast prices closely matching this season. Increased shearing costs continue to make wool uneconomic except at the fine end of the market. For many sheep farmers, shearing costs now exceed returns from wool. This has seen an increase in self-shedding breeds being incorporated into flocks as farmers look to reduce shearing costs.

Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.