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flag Australian sheep processors see slim margins despite minor July gain, hit by rising costs and uneven exports.

flag 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. flag 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. flag Co-products now vital for offsetting costs, yet meat sales remain under pressure. flag Smaller processors struggle with viability, while larger firms use diversified exports. flag Structural issues persist, including volatile supply, currency swings, freight costs, and New Zealand competition. flag Domestic demand stays weak due to cost-of-living pressures, limiting price flexibility.

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