MLA reports that the high prices, combined with the strong Australian dollar, and slow overseas demand have accentuated the pressure currently been faced by processors.

Typically, processors would conduct maintenance in late July and August, but so far closures have been reported in NSW, and another major exporter closing at the end of this week in SA.

These plants will be closed for between a fortnight to over a month, with reports of more closures to come, MLA says.

The plants still operating have reportedly reduced kill shifts in an attempt to minimise production disruption.

This has impacted lamb slaughter, with June kills (month to date) in NSW, Victoria and SA down 15pc, 17pc and 20pc, respectively, on May.

But MLA says heavy lamb prices were last week unable to maintain their recent levels, with reductions recorded at physical market.

This was a result of export buyers either not making purchases or operating cautiously.

Increased yardings, plus increased plainer lambs also played a role in the cheaper prices.

Victoria's heavy lamb indicator suffered the greatest reductions, slipping 17¢/kg on last week to stand at 482¢/kg (carcase weight), while values in NSW and SA reduced 10¢/kg and 13¢/kg to finish at 450¢/k and 447¢/kg respectively.

However, when comparing these heavy lamb prices with the same time last year, they are still much higher.