MLA reports that all states increased production, with Queensland recording the largest rise – up a whopping 46pc.

NSW slaughter increased 8pc, SA 7pc and Victoria was just 1pc higher.

November 2007 registered the largest monthly slaughter numbers on record, with NSW, Victoria and SA all reaching high levels.

But MLA says sheep slaughter was 18pc lower than the 2006-07 financial year – reflecting recent falls in the sheep flock.

Additionally, improved seasonal conditions resulted in tighter numbers early in the year and again during June 2008.

The main reductions occurred in NSW and Queensland, with NSW 23pc lower and Queensland 25pc below the previous financial year totals.

SA sheep slaughter was down 6pc and Victoria was 16pc lower.

Meanwhile, in lamb markets MLA reports that buyers are hoping for a price correction following recent high prices for lambs, the increased supplies and the upcoming closures of various plants in the eastern states for maintenance breaks.

However, slaughter grades have held up in value during the week, with the national trade and heavy lamb indicators rising 10¢/kg and 6¢/kg from last week , to 456¢/kg and 461¢/kg, respectively.

There were mixed trends across the states, with only SA and NSW dearer.

Restocker, Merino and light lambs were cheaper, with the lack of quality and weaker restocker and feeder demand having an impact.