Cootamundra Saleyards manager Jeff White said while the closure of Manildra Meat Company was “very disappointing” for the town, it was not likely to have much of an impact on the local yards.
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He said Manildra was buying some stock out of the Cootamundra Saleyards but was not one of the yards’ biggest buyers.
Mr White is confident other buyers will have sufficient orders to fill out of the Cootamundra numbers.
“I don’t see it (Manildra’s closure) having an effect on numbers here,” Mr White said.
He is hopeful the sheep and lamb market will go through a price correction allowing processors such as Manildra the room to write a profit at the other end, however Cootamundra Associated Agents president Steve Tolmie does not anticipate this happening.
Currently lambs are selling for up to $7/kg on leg; more than $1/kg more than this time last year.
The price increase has been steady for months.
“There has to be a price correction; as good as it is for producers, it is not sustainable for processors,” Mr White said.
He said there is money to be made for farmers at $5/kg, a price which also allows the middle men such as abattoirs an opportunity to make money.
Manildra was not alone in battling high prices with an announcement on the same day Manildra closed that Southern Meats in Goulburn would wind back operating days in answer to the high prices.
Mr Tolmie said it is definitely a producers’ market at the moment. He said Manildra had been buying heavier lambs, up to 28kg, to export to the United States, however said these will be snapped up by other buyers.
Mr Tolmie said he does not see prices backing off saying without an influx in numbers producers will continue to be the big winners.
Other abattoirs are already throwing their hands up to assist those workers left unemployed as a result of Manildra’s closure.
In today’s Cootamundra Herald, both Teys and Thomas Foods International, based in Tamworth, are advertising for various members of staff at their respective meatworks.
Recent top prices at Cootamundra Saleyards
- Feb 8: $6.44/kg CW
- Jan 25: $6.10/kg CW
- Jan 11: $6.35/kg CW
- Dec 14 2016: $5/kg CW
- Nov 30: $5.44/kg CW
- Nov 16: $5.73/kg CW
- Nov 2: $5.60/kg CW
- Oct 19: $5.60/kg CW
- July 13 2016: $6.80/kg CW
- July 18 2013: $5.10/kg CW