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flag Australian sheep processors hit record low profitability in July 2025 due to rising costs and weak export and co-product prices.

flag Australian sheep processors faced worsening financial distress in July 2025, with the Sheep Processor Trading Conditions index hitting a record low of 0.4%, and the year-to-date average dropping to 29%. flag Rising livestock costs outpaced export returns and domestic retail prices, creating a sustained cost-price imbalance. flag Despite improved seasonal conditions and higher saleyard prices, processors struggled to maintain margins. flag Export markets showed mixed results, with gains in China and Malaysia offset by declines in the UAE and limited progress in the U.S. Co-product markets also weakened, with tallow values falling 15% in June, further pressuring incomes. flag The industry’s structural challenges continue to threaten processor viability.

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