MEDIA RELEASE
Wellard has closed its forward contracts for August delivery of mutton sheep to the company’s Beaufort River Meats abattoir in Kojonup, after securing its required numbers.
The contracts lock-in prices of up to $3.80/kilogram for the producers who signed up to the supply agreements.
Wellard Livestock Manager Paul Mahony said Wellard offered the forward contracts through to August in response to demand from some sheep producers for guaranteed pricing.
“The BRM forward contracts give those producers price certainty, and unlike other commodities, there’s little production risk exposure because they know they will have the sheep,” he said.
“Given the current price has been pushed to $2.95/kg and the price during August/September last year topped at $3/kg, I think the producers who chose to lock in at $3.80/kg have made an astute decision which will give them pricing certainty at an historically favourable price.
“Feedback from a number of growers also suggests the $3.80/kg guaranteed has made their bank managers happy too.”
Mr Mahony said the forward contracts provide BRM with some supply certainty at a time when numbers can be difficult to source.
For further information please contact:
Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871