News

The sheep skin market continues to show resilience, with strong demand across several categories, although supply constraints remain the dominant force shaping current conditions.

The spring lamb season delivered solid results, driven by healthy demand. However, not all buyers were able to participate at the elevated price levels, with only a select portion of the market able to meet the rates achieved. This highlights the ongoing divide between demand and purchasing capacity.

Momentum has carried into the shorn lamb season, which has opened strongly across all types. From short-wool skins suited to lining purposes through to higher-quality garment skins, competition has been evident, with most buyers actively working to secure adequate volumes.

Sheepskins have seen noticeable upward pressure on pricing, largely due to the ongoing shortage of supply nationwide. Short-wool skins are continuing to find a home in shoe lining production, while stronger merino skins with wool attached are in high demand for wool recovery. This segment remains one of the most sought-after in the current market.

Exotic skins are still moving, but returns are not keeping pace with processing costs, placing pressure on processors and limiting enthusiasm in that category.

At the lower end of the spectrum, bare shorn sheep and shorn lambs remain of no commercial value (NCV), with little change in this space.

The overarching theme across the market is the tight supply of skins throughout Australia. This scarcity is underpinning price strength in the green skin market. However, it is worth noting that the finished product market has not risen at the same rate, creating a disconnect that may influence processor margins and future buying behaviour.

As the season progresses, supply levels will remain a key factor to watch, particularly in how they continue to impact pricing dynamics and processor confidence across the industry.

Kind regards,
Matt Craig, Skins Manager