WATCH: Sheep market shows signs of recovery after early 2025 slump with Erin Lukey

The Australian sheep market is showing early signs of recovery after a challenging start to 2025, according to Erin Lukey, Senior Market Information Analyst at Meat & Livestock Australia (MLA). Speaking with APlus News, Ms Lukey provided insights into the recent market trends and the factors influencing supply and demand.

Ms Lukey explained that the sheep market has been particularly volatile over the past two years, largely driven by fluctuating supply levels.

"We often see a lot of supply come through in the second half of the year, particularly around November and December, which typically pushes prices down," she said.

"However, that flush of supply didn't happen in 2024."

Instead, producers opted to delay putting stock on the market due to weather conditions and the timing of animals reaching optimal weights and quality.

This led to a shift in supply patterns, with more stock entering the market in early 2025.

"As a result, we saw a significant drop in prices in the first few weeks of the year," Ms Lukey noted.

However, the tide may be turning. "This past week was the first all year that we've seen prices lift," Ms Lukey said. The initial price drop was driven by an influx of supply, but as that supply has slowed, prices have started to recover.

"Processors still need finished stock, and that demand is helping to push prices up again."

While it remains to be seen how the market will continue to track, the recent price lift is an encouraging sign for producers.

With ongoing shifts in supply dynamics and external market influences, industry stakeholders will be watching closely to see whether this upward trend continues.