Goat prices go from strength-to-strength in 2016

Australian over-the-hook export goat indicators reached unprecedented levels in 2016, moving from strength-to-strength as the year progressed – largely underpinned by tighter supplies, the development of new processing facilities and growing demand for the end product, both domestically and overseas. The A$ did drop below 70US¢ in January 2016, but has since hovered around 75US¢ for the remainder of the year, which has provided further support for Australian goatmeat export returns. 

The eastern states over-the-hook export goat indicator (12-16kg cwt) reached a top of 611¢/kg cwt in 2016, and averaged 556¢/kg cwt for the year – 261¢ higher than the five year average (295¢/kg cwt).

The average weekly eastern states goat slaughter for 2016-to-date was 27,997 head – 15% lower than the five year average (32,449 head). The tighter supplies were largely due to the wetter conditions and a previous extended period of high slaughter having an impact on numbers in paddocks and rangelands.

Australian goatmeat production for January to October 2016 eased 11% year-on-year, to 23,623 tonnes cwt (Australian Bureau of Statistics). Victoria accounted for almost half of the total, at 11,389 tonnes cwt, to be firm year-on-year.

Despite solid demand from international markets, lower production saw Australian goatmeat exports decline 21% from year-ago levels, to 23,797 tonnes swt for the year-to-November (Department of Agriculture). Shipments to the US accounted for 66% of total exports for the year-to-date, at 15,776 tonnes swt, to be firm year-on-year. Other top export destinations for the year included:

• Taiwan – down 19%, to 2,782 tonnes swt
• Caribbean – down 19%, to 1,558 tonnes swt
• Korea – down 11%, to 1,359 tonnes swt

Solid demand and growing investment in the industry is likely to continue providing support for the Australian goat market in 2017.