WA to Eastern States sheep transfers highest since 2020 as drought continues to bite

More than 357,000 sheep have been trucked from WA to the Eastern States so far this year — the highest number since the mass exodus of 2020, highlighting the bleak conditions farmers face. New figures from the Department of Primary Industries and Regional Development reveal monthly volumes for the first quarter of 2024 were 250 per cent higher than the 10-year average. A total of 357,602 head of sheep and lambs crossed the Ceduna checkpoint from WA during the first quarter, compared with a record high of 513,844 head during the same period in 2020. “This equates to about 120,000 sheep and lambs being sent to the east each month since the start of 2024,” Episode 3 market analyst Matt Dalgleish said. “That’s versus the 35,000 or so head that would be expected to be sent each month, based on the average volumes seen transported over the last decade for the first quarter of the year.” The year 2020 was a record one for west-to-east transfers, with more than 1.9 million head of sheep and lambs trucked across the Nullarbor in 12 months. The mass exodus peaked in October and November 2020 as WA producers desperately sought to offload stock amid an ongoing drought, soaring demand from the Eastern States after favourable winter conditions, and big west-to-east price differentials. This year’s Q1 west to east flows were significantly higher than during the same period last year — when 195,473 head crossed the border — and included about 206,000 sheep and 152,000 lambs. “Big volumes like what are being sent west to east this year are only really viable when the price discount between the west and east are wide enough to cover freight costs, so these volumes highlight very clearly the strain the WA sheep producer is facing presently,” Mr Dalgleish said. “The looming concern is that the live export avenue for turn-off will soon be closed off until mid-September.” The annual three-month moratorium on the live export of sheep by sea from Australia to the Middle East during the northern hemisphere summer is due to start on June 14. Mr Dalgleish said analysis of the spread between western and eastern pricing showed since the moratorium began in 2018, the discount spread had deteriorated between May and September every year. “Earlier analysis . . . on spreads between WA and the east highlighted that the long-term average discount between WA trade lamb and the Eastern States trade lamb sits at a 7 per cent discount,” he said. “During May to September in 2020, the discount widened to just 9 per cent. “In 2020, it seems the very strong demand for WA sheep and lamb in the east helped keep the discount spread at fairly normal levels. “However, in other years when the live export sector was not available as an outlet for WA farmers to turn-off due to the moratorium period, and the demand from the east wasn’t so strong, the discount widened significantly between western and eastern prices.” This highlighted the need to ensure WA sheep producers had access to “several viable options” year-round if the Albanese Government’s planned live sheep export ban went ahead, Mr Dalgleish said. He said the Federal Government must do more to rebuild relationships in the Middle East-North Africa region and develop pathways for increased access to boxed sheepmeat exports. “The government decision to limit access for Qatari airlines did not help our chances at all,” he said. “Airfreight volumes to MENA for Australian sheepmeat remains below pre-COVID levels. We should be encouraging this airfreight option for turn-off to assist WA growers, particularly for the bag lamb market. “Similarly, meat processors, particularly in WA, need to be well supported to step in to fill the gap that will be left, otherwise WA producers will bear the brunt if there is a backlog of sheep and lamb to process.”