SHEEP prices in WA hit a new record last week with 2yo wethers reaching $156 at the WALSA Katanning June Special sale.
Low sheep numbers have been responsible for pushing prices up around the nation as live exporters try to shore up numbers to meet demand.
Recent Meat and Livestock Australia figures show Australia's sheep flock has dropped to 76.9 million head, the lowest on record since 1916.
Demand is increasing exponentially with the population growth in countries like the Middle East and Japan, and subsequently lamb slaughter has increased by 34 per cent over 12 years.
Sale yardings are also up by 15 pc on this time last year and record prices have been said to attract more sheep to sales.
The question is now whether growers will get back into sheep due to the higher prices.
Live exporters dominated the sale, taking home the majority of both wether and ewe lines.
Before the sale Livestock Shipping Services sheep buyer Chris Medcalf admitted prices would be pushed higher because of limited stock numbers.
Wellard Rural Exports sheep buyer Murray French purchased many lines of sheep, including the top priced wethers.
He said there was now a great opportunity for growers who had stuck with sheep to reap the benefits of good prices.
Mr French said sheep numbers were now at all time lows and to keep selling off sheep at the current rate was not sustainable, especially in WA.
"We can't keep this up for the simple reason that the sheep are not around, the flock has diminished," Mr French said.
"And wool has had a huge bearing on this fact."
Mr French said political issues like mulesing had been the straw that broke the camel's back for growers.
"Farmers have had enough and with politics on top they have had stepped out of the industry," he said.
"There are a number of reasons we now don't have enough sheep and it is not just because farmers have turned increasingly to cropping."
Mr French said many young farmers simply did not want to work with sheep.
Wellard Rural Exports livestock manager Garry Robinson agreed with the sentiment that the current high prices being paid for sheep could not be maintained.
"I would however like to congratulate the growers who took a punt on the auction system and high prices were paid for good quality sheep," Mr Robinson said.
"But the prices that were achieved at the sale are not sustainable in the short or long term, particularly with the exchange rate and high Australian dollar.
"Additionally most of the sheep available on offer in the current supply are younger, lightweight sheep that are priced at the lower end of the market."