BUNGEET sheep farmer Doug James says the past year has been a productive one, despite market prices being low due to a high surplus in flock numbers across the country.

Mr James runs 2600 ewes and 3800 lambs on his 3200 acre family operated 'Viewbank' property and said seasonally this year has been excellent with some of "our best numbers for quite some time”.

“El-Nino has been a non-event this year which has had no impact on the farm as we are seeing usual seasonal weather patterns," he said.

“The big problem we have had this year on the farm is the market was flooded, forcing prices down due to increased supply, and supply in storage for export was at capacity.

“We are seeing the market starting to settle which will give local farmers like us an optimistic outlook in sales in 2024.”

According to the latest Australian agriculture report, it’s been a tough six months for the Australian sheep industry, impacted by a limited capacity to process the large national flock.

Lamb prices are expected to see some recovery in the New Year while the outlook for mutton remains subdued.

Production is expected to remain relatively high in the first half of 2024 but is expected to fall from the high levels seen in 2023.

Australian lamb prices are expected to strengthen in the first half of 2024.

The National Trade Lamb Indicator fell 48.8 per cent between January and September, to a low of 411 c/kg.

Prices have since seen a slight recovery, gaining support from rainfall on the east coast.

Prices are likely to improve as the flood of lambs seen in the second half of 2023 will slow due to the dry season seeing more stock turned off early.

There are reports of forward contracts ranging from high 500c/kg and low 600c/kg already being offered by processors.

Mr James has sold 40 per cent of his lamb drop of this year’s production with the remaining 60 per cent to be sold in early 2024 with the expectation they will be sold at a better rate with a stabilising market forecast.

“After selling our lambs this year at a rate lower than what we would like, we remain positive that early next year we will see the market settle and prices increase which should balance out the sales as a whole,” he said.