Legs of lamb almost double in price at supermarkets amid drought
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One of Australia's favourite roasts has nearly doubled in price in 18 months. (Supplied: Alice Zaslavsky)
The price of a leg of lamb in supermarkets has almost doubled in the past 18 months, as a drought ravaging southern Australia squeezes supply.
Successive lamb price records have tumbled at the saleyards since late May, with eye-watering prices driven by frenzied bidding for top-quality fat lambs.
As the costs are passed on at the retail level, shoppers are choosing cheaper alternatives like chicken and pork.
The price of lamb has risen since January last year. (ABC Rural: Jane McNaughton)
Drought drives prices higher
A leg of lamb is selling for $13 per kilo at Coles and Woolworths, up from $8 per kilo in the major supermarkets in January 2024.Chops are now $21 per kilo at Coles, up from $12.50 just 18 months ago.
Rachael Yeo has cut back on buying lamb for her family. (ABC Rural: Jane McNaughton)
Smeaton mother and community cook Rachael Yeo said despite lamb being her favourite meat, it was no longer a regular staple on her dinner table.
"It's too expensive and chicken is a lot cheaper, we can buy good quality free range chicken for a really good price so we opt for that now."
Mr Dalgleish says lamb prices will remain high for years to come. (ABC Rural: Jane McNaughton)
More chicken, pork on the menu
Agricultural market analyst Matt Dalgleish said the retail price of lamb followed the trend at the saleyards."Saleyard pricing of lamb nationally over the last year has gone up by about 32 per cent," he said.
But butcher Justin Cashman, from Colac in south-west Victoria, said it was difficult to pass that cost on to consumers.
"I simply know we're not making enough out of lamb.
Justin Cashman says it is difficult to keep retail lamb prices low. (ABC Rural: Jane McNaughton)
"Only four or five weeks ago we simply couldn't get enough racks or cutlets but that's stopped, people aren't paying for it anymore."
Mr Cashman said he was selling a leg of lamb for $15.90 per kilo, but that price was a tough ask for many families.
"Our poultry sales have probably increased 30 per cent in the past couple of weeks and our pork numbers are also up," he said.
Mr Cashman said the trend was evident in hospitality as well, with restaurants sourcing alternative meats.
"[Our customers] in the restaurant trade are putting cheaper things on the menu to try and entice people in the door," he said.
Lamb prices are expected to remain high until Australia's sheep flock recovers. (ABC Rural: Jane McNaughton)
Red meat 'pricey'
Red meat sales have declined recently at Ritchies IGA stores, according to chief executive Fred Harrison."Red meat is generally perceived as pricey," Mr Harrison said.
"People might be buying more beef mince, which is a cheaper cut of product.
"At Ritchies we're currently looking at around $15.99 per kilo mark for a leg of lamb, but we also run promotions quite often at about $11 per kilo."
He said lamb as a roast still represented good value.
"But when you start getting to cutlets, they are quite expensive on a per kilo basis and to try and feed a family you could be up for a lot of money," Mr Harrison said.
Fred Harrison says supermarkets' larger supply chains can reduce price fluctuations on shelves. (ABC News: Kyle Harley)
Supermarkets can keep their prices lower than butchers by offsetting losses on certain cuts of meat to other products, because of their larger economies of scale.
"You have to walk all the way to the back of the store to the meat aisle, and on the way you might pick up five or six other items, so there is a sales strategy there," Mr Dalgleish said.
"It makes it tough for independent butchers.
"I think we will eventually see this high price [in the saleyards] flow through to the retailers, absolutely."
Mr Cashman is considering increasing the price of lamb at his butcher store. (ABC Landline: Pip Courtney)
A Coles spokesperson said there was still strong overall demand for lamb with some customers "looking for value and others opting for more premium cuts rather than eating out".
"We're always looking for opportunities to deliver value on top-quality Australian lamb, and other meat, for our customers, while also supporting fair prices for farmers," a Woolworths spokesperson said.
Woolworths charges $19 per kilo for lamb chops, or $16 on special in Ballarat in July. (ABC Rural: Jane McNaughton)
Price increases to continue
Australia's sheep flock is shrinking, with numbers expected to stay low until at least 2027.Lamb prices are expected to remain high until the flock recovers from the drought.
"If the drought is to continue for another six or nine months, then it will have a longer-term impact on the quality, but currently the [quality reduction] is only minimal," Mr Harrison said.
Mr Dalgleish said lamb prices would continue to rise.
Written by: Jane McNaughton, ABC News.
