WA meat processors could be in for a tough time next year, but sheep producers should benefit from a large reduction in WA's sheep flock, according to WA Meat Marketing Cooperative (WAMMCO) chief executive Des Griffiths.

This week, WAMMCO announced its second best annual profit of $2.7 million for the past financial year after paying qualifying producer members a pool bonus of $1m.

The result was an improvement of $1.3m on 2006-07 profit of $1.4m.

The member pool bonus was maintained at 5pc of the value of livestock supplied by qualifying members for the fourth consecutive year, resulting in a distribution of an additional $1m.

Mutton was also included in the pool distribution for the first time this year with an average payment of $1.07 a head.

The average bonus payment for qualifying lambs was $3.37 a head with a top figure of $5.30 a head.

WAMMCO has distributed a total of $3.8m to members over the past four years in the form of additional bonuses.

WAMMCO paid an average price per head to lamb producers of $65.55, down marginally from $65.90 the previous year.

However the average weight per head of lambs processed was slightly lighter at 21.04kg , down from 21.3kg the previous year.

Mr Griffiths said while the year had been challenging for members, customers and WAMMCO itself, the result was driven by a higher throughput of capital or breeding stock.

He said this could mean higher sheep prices next year, but lower numbers for processors to source.