AUSTRALIA’S largest family-owned meat processor Thomas Foods International today released new lamb and mutton forward contracts for delivery into early next year to its South Australian and New South Wales plants.
TFI has released a 16.1-34kg contract of 530-550c/kg for crossbred lambs and 500-520c/kg for Merino lambs, delivered from December 2015 to April 2016 to its Murray Bridge, Lobethal, Tamworth and Wallangarra plants.
The lamb contract has a 50 percent upside clause and TFI will discount lambs over 34.1kg cwt by 50c/kg.
The mutton contract offers differing rates for 16.1-30kg and 30.1kg+ sheep delivered to its Murray Bridge plant from late December 2015 to late February 2016. The rates for 16.1-30kg Merino wethers is 340c//kg; for Merino ewes 330c/kg and for crossbreds 300c/kg. The rates for 30.1kg Merino wethers is 280c/kg; for Merino ewes it is 270c/kg and for crossbred it is 240c/kg.
Both contracts close on November 30 and are subject to TFI’s usual contract terms and conditions.
TFI’s national smallstock livestock manager, Paul Leonard, said the company was trying to give an incentive for store lamb buyers to add value to the volume of feed grain available and to any failed crops.
“We want to underpin that risk in them using some of these fail crops by giving them guaranteed forward pricing.”
Mr Leonard said large numbers of lambs had already been shorn and put back onto pasture in areas of South Australia, New South Wales and Victoria, and TFI hoped to contract some of these. TFI hoped to contract around half its normal lamb and mutton kills at the plants during the summer period.
Click here for TFI’s new summer lamb contract.
Click here for TFI’s new summer mutton contract.