Mr Fletcher says that two weeks ago the lowest number of lambs had been processed in 25 years in eastern Australian because processors were unable to source stock.

This was despite reports one processor was offering producers $5.80/kg.

Mr Fletcher said the sheep industry was "going through interesting times" and under- or over-productions of just 10pc were needed to influence the supply and demand.

This would become a constant challenge in the future as sheep production declined and the company would pick its markets and timing.

"We will be killing more lamb this year and have enough markets out there that we can dictate where we are going," Mr Fletcher said.

The company exported to 95 different countries and he had made it a passion to tackle the more difficult to access markets.

Understanding certain export markets had been a challenge and the company had learned to match periods of high demand created by particular holiday and festival periods while maintaining a constant workforce.

His big fear was that farmers might respond to high grain prices by reverting to the previous practice of turning off spring lamb thus creating a production hump.

He said the cost structures of running seasonal abattoirs was prohibitive and was a reason why the New Zealand lamb industry had "fallen over".

New Zealand is not expected to fulfil its European Union quota this year with suggestions that lamb production there have declined by 20pc as farms have been given over to dairy.

* Extract from a full report in Farm Weekly, WA, July 17 issue.