Middle East conflict impacts airfreight and drives down prices

According to Meat & Livestock Australia's National Livestock Reporting Service, the air freight issue meant light lambs and Muslim Kill lambs went for $20 to $40 a head cheaper in Bendigo on Monday with regular processing orders not operating.

Trade lambs under 24kg were also down by $15 a head while heavier slaughter lambs destined for other markets such as the US held up better, although prices still softened by $6 to $10 a head.

It comes after Iran's strikes against Israel over the weekend caused many countries in the region, including Lebanon, Jordan and Iraq to temporarily closed their airspaces, while Israel and Iran imposed restrictions on theirs.

Even though major airlines such as Emirates and Qatar Airways have since resumed operations, some routes were still impacted on Monday, and warnings have been issues that disruptions to services may continue for some time yet.

Elders Bendigo livestock manager Nigel Starick said the air freight issue caught many in the industry off guard.

"There have certainly been issues with planes having no access to land that generally carry freight across in that MK lamb job and that's put a bit of a halter on that category right at the moment," he said.

"It might be a day or two, it might be a week.

"It really happened quickly... but on the other side of card some people can't hang onto their stock and are still going to have to sell to whatever market they've got available.

"I know that abattoirs are out there trying to source alternative markets for the same stock as we speak."

Mr Starick said he expected to hear more about possible alternative markets by Friday.

The air freight also comes alongside increased yardings ahead of the Anzac Day public holiday, with the additional supply keeping pressure on the market.

Mr Starick said producers might want to consider keeping feeder lambs in paddock a bit longer in containment areas.

"We're just encouraging people that if they have got stock they're carrying just to keep feeding them on for a bit longer and try to ride it out and see where it goes from here," he said.