WESTERN Australian producers are running thousands of extra sheep onfarm at a time they would normally be sold.
Oversupply, fewer live sheep export boats and low prices have all played a part - and industry is feeling the pinch.
Local abattoirs have worked around the clock to process large numbers with less staff, but reports have indicated an eight to 10 week logjam.
And it has come at a cost for some producers, with short supply of bulk feed remaining and sheep dropping in weight and grade.
To put it simply, producers are paying more to keep these sheep onfarm without the returns they hoped for.
Results from Meat & Livestock Australia's (MLA) Sheep Producer Intentions (SPI) survey conducted in February, showed 40 per cent of WA producers were holding onto lambs because prices were not strong enough at the time.
Last week, lamb and sheep yardings were down year-to-date by 30pc or 50,131-head, and 14pc or 17,783-head respectively.
However, compared to month-to-date levels they were actually up - and by a pretty hefty percentage with 98pc or 11,400-head for lambs and 205pc or 11,257-head for sheep.
MLA market information analyst Rip Atkinson said most WA prices were swaying between a 25 to 50 per cent discount to the national price.
Mr Atkinson said survey data revealed WA producers preferred more direct, reliable methods, rather than potentially volatile saleyard prices.
He said this reduced dependence on the sales channel.
By the end of last week, mutton prices had climbed by 6 cents per kilogram carcase weight (cwt) to operate at a 48pc discount or 211c at 225c/kg cwt.
This bucked the trend, as WA was the only State to register a lift in prices week-on-week.
Muchea Livestock Centre operated at a 13pc or 31c premium to the price, trading at 256c/kg cwt but only contributing 12.5pc to the indicator.
Meanwhile, trade lamb prices fell 13c or 22pc to finish at 518c/kg cwt.
Katanning saleyards registered a 7.3pc or 38c premium over the price at 556c/kg cwt and contributed 35pc of supply to the indicator.
Merino lamb prices dropped by 65c or 15.5pc to 353c/kg cwt and were 28pc or 138c/kg cwt lower than 491c/kg nationally.
Muchea again registered a strong price premium, operating at 443c/kg cwt, which was 25pc or 89c/kg cwt above the State price.
Taking a look at lamb slaughter, Mr Atkinson said WA weekly levels were up by 8,800-head or 22pc to record 49,411 processed.
"Compared to the corresponding week in 2022, numbers were higher by 39pc or 13,800-head," he said.
"Totals were higher than year-ago levels by 21,128 head or 3.2pc to record 671,000-head processed year-to-date.
"Evidently, despite lower lamb yardings, lambs have been retained onfarm in the hope of improvements in prices over winter as supply tightens.
"Data collected from the SPI survey during February demonstrated that producers pointed out as a reason to retain stock onfarm."
According to the survey, 45pc of WA producers prefer over the hooks, as a selling method and a further 16pc chose paddock sales.
Both results were well above the national average of 28pc and 6pc respectively.
In sheep, slaughter was up 161pc or 21,224-head compared to the corresponding week in 2022.
Mr Atkinson said the total weekly volume was 34,401-head with week-on-week numbers up 140pc or 20,000-head.
Year-to-date figures showed slaughter was higher by 76pc or 222,350-head to record 514,000-head processed.
"Robust slaughter numbers and supply of slaughter weight muton are a result of the flock rebuild," he said.
"Three favourable seasons are placing downward pressure on price and therefore mutton prices in the saleyards."
Producers pay the price keeping sheep in condition
OVERSUPPLY and fewer boats leaving Fremantle port has made the season a trying one for livestock producers.
As a result, Elders State livestock and wool manager Dean Hubbard said many clients were holding stock they normally would have offloaded by now.
What's made the situation more challenging is the time of year, as significant rainfall across many areas put an end to remaining dry feed, with less bulk feed available.
Fortunately, for central and southern producers the season has broken with a solid start.
But keeping sheep in prime condition to meet processor requirements has proven costly and time consuming.
Mr Hubbard said lambs, which ideally would be processed by now, were slipping in condition due to the forced delivery delays.
This could mean producers have no choice, but to cancel bookings because they haven't met specifications.
"There may be an opportunity for some, albeit inadvertently, to send remaining lambs in prime condition to WA processors in coming weeks," he said.
"At the same time, we have found a positive in recent weeks with a growing number of sheep being sent to the Eastern States for processing.
"It's all driven by our growers wanting to offload and given that opportunity to do so."
"The prices received are probably a little less than they would have hoped for in WA - it's a decision some clients might choose to take.
"This market is driven by the price of freight and the availability of stock in our eastern abattoirs."
Hook prices for WA lamb are 600-620 cents a kilogram cwt, compared to 680-700c/kg cwt in South Australia.
Mutton has hovered at the 300c/kg cwt mark compared to 450c/kg cwt with a dollar rise in the past three weeks.
Mr Hubbard was mindful of the reliability of saleyard price indicators when trying to draw price comparisons with the Eastern States, given the low numbers of sheep and lamb being sold through WA yards.
Hook pricing indicators have proven more reliable.
He said the preference of producer clients was to send sheep over the hooks and receive more favourable returns.
Nutrien Livestock stud and commercial sheep manager Tom Bowen said while prices weren't exceptional, well finished and presented sheep were still making solid values.
Mr Bowen said smaller framed sheep with lighter condition, usually held in the paddock to be turned over in six to 12 months' time, had taken a pricing hit.
"No-one has the confidence to have a crack at those lighter weight lambs because they're wary about finding markets when the sheep are ready to be moved off property," he said.
"They don't go to the lotfeeders or backgrounders and if they do go to a processor they need to be the right fat score and dress weight.
"If they are big enough and we could get them through the abattoir then it would be fine, but there isn't enough space, so around and around we go."
Mr Bowen added, "we're lucky the season has gone with us and there's water in the dam, because people have had the option of sitting on those animals until they can market them directly from farm to live export, feedlots and abattoirs."
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The market and processing logjam has forced producers to hold - in some instances - thousands of extra sheep onfarm at a time they would normally be sold.
Mr Bowen said this had proven costly for producers, when trying to keep condition to processing standards.
He said it was a big call to say, "I'll feed my lambs, but I haven't got a home for them".
"If space does free up in the abattoirs and they aren't in good condition, producers will still be in the same boat because processors won't want them.
"At the same time, if green feed comes along and lambs roam around chasing it, they will go back in condition until they get enough protein to fatten up again.
"There will probably be a couple of opportunities for people to open offload to the processors.
"So it's the old thing, do I feed them and hope for the best? Or not feed them until the market comes along?"
