Lamb slaughter fell 18pc across the eastern states during August 2008 compared with the same time last year, but remained 44pc higher than July, MLA reports.
It says this was a result of processor activity lifting, after maintenance closures in July.
According to MLA, the increase in lamb slaughter since July can also be attributed to the presence of new season lambs in the market.
Lamb slaughter typically increases towards the peak sell off of new season lambs in October and November.
If the season improves significantly following the recent rain, producers may opt to hold onto supply, which could see lamb supply peak later than normal.
During August 2008, Victoria accounted for the largest share of lamb slaughter, at 49pc, similar to the 48pc last year.
NSW represented 31pc, up from only 22pc last year.
SA accounted for 17pc, well below 29pc in August 2007.
Queensland's share was only 3pc of total slaughter for the month, compared with 2pc last year.