A LAMB contract of 750-800 cents a kilogram for the Christmas-New Year period from South Australian-based processor Thomas Foods International is expected to give producers and restockers incentive to finish lambs in the difficult season.

The TFI contract released today for 18-32kg carcase weight 2-5 score lambs delivered to its Lobethal and Tamworth plants is offering 750c/kg for crossbred and Dorper lambs in December, rising to 780c/kg in January and to 800c/kg in February.

Producers with Merino lambs in the same weight range and condition score will be paid 720c/kg in December, 750c/kg in January and 770c/kg in February.

All lambs over 32.1kg will be discounted 50c/kg, 16.1-18kg lambs will be discounted 130c/kg and all stock under 16kg will be paid for according to the grid of the week.

TFI’s national small stock manager Paul Leonard said the contract would hopefully help give an incentive to restockers to buy lambs and supplementary feed them or given enough rainfall, finish them on a summer crop or lucerne.

“I think there are going to plenty of grass lambs in October-November and probably to some level, in early December.

“We just want to try to encourage a few people to perhaps, rather than forego (producing) side or in-between type lambs, this may encourage some people to go out and buy some store lambs in particular, because store lambs aren’t expensive at the moment, relative to the market,” he said.

“There are probably plenty of opportunities to buy lambs and make money at that (contract price) level.”

Click here to review the TFI lamb contract details.

Source: TFI.