Industry relief as exports flow

27 Sep, 2012 02:00 AM

While the permits issued this week would take some of the immediate pressure off the system, Pastoralist and Graziers Association president Rob Gillam said he was hoping more permits would be issued before too long.

Mr Gillam said over the next six weeks there would be big volume of sheep coming onto the market particularly from the drier areas like the Eastern Wheatbelt, where growers didn't have the feed available to hold their sheep.

"The damage has already been done to create this stockpile of sheep," he said.

The affect on prices was likely to be immediate according to Mr Gillam and until the trade relaxed and got going again, there would be continued pressure on prices.

"It is about supply and demand," he said.

"At the moment we have a flush of supply and only four shipments for 120,000 sheep.

"The export prices advertised today (Monday) were $20 back on where they should be."

WAFarmers president Dale Park expressed his relief at the permits being issued on Monday as he was expecting it to take longer than it did.

Mr Park said it was important from now on to ensure all sheep were unloaded when they arrived in the Middle East.

"It is too soon to tell what impact the situation will have on prices," he said.

"It will be interesting to see what happens to the price over the coming weeks but we are hoping it will bounce back."

WAFarmers was calling on growers, where possible, to keep their sheep out of the saleyards until the backlog of sheep was cleared out.

"I know that is easier said than done as there are quite a few who will be running out of feed," Mr Park said.

"But it is going to take a little while to deal with this backlog."

Mr Park was confident there wouldn't be too many long-term implications for the industry, provided boats were unloaded at their destination.


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