Sheep Slaughter Drops While Processor Margins Improve in Australia 2026

Sheep and lamb slaughter in 2026 remains below historical levels. Weekly average sheep slaughter is 106,268 head, about 18% lower than the ten‑year average and 65,000 heads fewer than the same period last year. Overall throughput is roughly 9% beneath the decade‑average, though it still exceeds the lowest figures of the past ten years.

Processor profitability saw a notable rebound in May, with the Sheep Processor Trading Conditions index jumping from 0.4% in April to 8% in May. The gain stems mainly from reduced livestock procurement costs: lamb purchase prices fell around 3%, mutton 1%, and trade lamb about 2%. Retail lamb prices rose modestly by 1.6%, helping offset higher operating costs, while export values remained steady across major markets.