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Australian sheep processors see slim margins despite minor July gain, hit by rising costs and uneven exports.
Australian sheep processors face ongoing margin pressures despite a slight July SPTC rise to 1%, driven by a 28% offal price surge and 10% tallow gains.
The August SPTC fell to 0.4% as livestock costs jumped 5.5% for mutton and 2.6% for lamb, outpacing uneven export gains—China, UAE, and Malaysia saw modest increases, but the U.S. market dropped 7% to A$15.00/kg.
Co-products now vital for offsetting costs, yet meat sales remain under pressure.
Smaller processors struggle with viability, while larger firms use diversified exports.
Structural issues persist, including volatile supply, currency swings, freight costs, and New Zealand competition.
Domestic demand stays weak due to cost-of-living pressures, limiting price flexibility.
Los procesadores de ovejas australianos ven escasos márgenes a pesar de una pequeña ganancia en julio, afectados por el aumento de los costos y las exportaciones desiguales.