Australia-Livestock exporters cannot get enough heavy sheep for Middle East.

AUSTRALIA-LIVE SHIPPERS CANNOT GET ENOUGH SHEEP.

Finding wethers for the live sheep trade is getting very tough and forward contracts may be issued to help secure supply.

Livecorp chief executive officer Cameron Hall said there have been some discussions about contracts, but in the past offering prices three to six months out has only yielded mixed results.

"I daresay some operators will continue to source stock from the spot market as well, as both strategies can suit both buyer and seller," Mr Hall said.

SAMEX livestock buyer based in Victoria, Peter Hooper, said forward contracts had been used in previous years, particularly to secure the supply of long-tail ram lambs for the Middle East market.

The bottom line to the live sheep trade continues to be a shortage of stock and strong demand.

Despite the credit crisis tightening its grip across the globe, demand for fresh meat and therefore live sheep continues to be very strong from the key markets in the Middle East according to Mr Hall.

"The price of oil, a lower Australian dollar and the high quality of stock from Australia have all worked in our favour," Mr Hall said.

Mr Hooper said ships had been sourcing stock from the eastern states every four to five weeks in recent months and the frequency of shipments was well up on last

But he too questioned the security of supply of suitable sheep into the future.

"Finding stock is getting harder. We are seeing younger wethers being sold to the trade nowadays, years ago 90pc of the wethers to the trade were older animals now it would be 60pc," Mr Hooper said.

"The ongoing drought has had an enormous influence as well as the switch away from Merinos and into prime lambs and cropping across large parts of Victoria."

Wethers weighing 45-50kg are now fetching $58 to $65, according to Mr Hooper, a far cry from the $2 to $5 paid for stock when the trade began in the 1970s.

"Back then mutton was very much a byproduct of wool production and the roles have almost completely reversed now."

Mr Hooper said some ewes had been sold to the trade but not in significant numbers.