AuctionsPlus Market Insights
May 7, 2019
With AuctionsPlus lamb sales for the 2018-19 season coming to a recent conclusion, a review of the overall sales performance highlighted several interesting factors. For registered sales between spring 2018 and March 2019, AuctionsPlus recorded increased activity across the board, from vendors, assessors and buyers, despite a slight decline in the number of overall lambs offered.
Compared to the same seasonal period in 2017-18, AuctionsPlus lamb sales for 2018-19 registered an 8% increase in the number of vendors listing stock, combined with a 9% increase in the number of assessors listing (see Figure 1). More than offsetting the rise in sellers was an 11% increase in the number of buyers purchasing over the same period.
However, the overall number of lambs offered online over the same period in 2018-19 fell just shy of 900,000 head - a decline of 4% on the previous year (see Table 1). The deterioration in seasonal conditions in the previous year was the main contributor to the 4% decline in total lamb numbers, with severe drought conditions hindering production and turnoff rates across many key regions.
With the increase in both buyer and seller activity across the AuctionsPlus arena in 2018-19, a direct comparison across the three lighter lamb categories with saleyard prices highlighted the premium returns to AuctionsPlus participants (see Figure 2).
For trade weight lambs, Eastern States offerings sold through AuctionsPlus during the 2018-19 season averaged 96c/kg cwt higher compared to the average price at saleyards. The 13% premium for trade lambs through AuctionsPlus corresponds to an estimated $19/head per lamb.
Across the lighter categories, the price premium for sales through AuctionsPlus increased. For light lambs, AuctionsPlus lambs averaged 109c/kg cwt, or 16% higher than the same category offered at saleyards. Similarly, restocker lambs average 108c/kg cwt and 16% higher.
Interestingly, the price premium achieved through AuctionsPlus for lamb producers, against saleyard returns, also corresponds to AuctionsPlus premiums received for young cattle in 2018-19.
AuctionsPlus lamb sales will recommence on the 28th of May.