Australia, the world’s largest exporter of sheep meat, is currently experiencing a sheep surplus. With an estimated 79 million sheep across the country, farmers are facing the lowest prices in years.

This oversupply of sheep has led to a drop in prices for farmers and, according to experts, should result in lower prices for consumers. However, the reality is more complex than it seems.

The current sheep surplus is a result of favourable weather conditions over the past three years.

Higher than average rainfall has led to an abundance of grass, allowing farmers to feed and breed more sheep.

Since 2020, the national flock has grown by an astonishing 23 per cent. This is the largest number of sheep, both for meat and wool, in Australia since 2007.

However, this surplus has led to a significant drop in prices. Less than two years ago, prices for Australian sheep were at record highs.

Now, farmers are struggling to make ends meet, with some even resorting to killing their sheep on their farms rather than selling them due to the low returns.

This year, the popularity of lamb shanks has surged by an impressive 200 per cent. Image source: Pixabay

The impact on consumers

Despite the low farmgate prices, consumers are yet to see a significant drop in the price of lamb at their local supermarkets and butcher shops.

According to Meat and Livestock Australia (MLA), retail lamb prices have only dropped 9.5 per cent since last year. This is despite the fact that about 70 per cent of the lamb produced in Australia is sold overseas.

The reason for this discrepancy lies in the complex supply chain of the meat industry. ‘Price flow from sale yard prices through to retail takes about eight months for both cattle and sheep,’ explained MLA spokesman Steve Bignell.

This means that even though farmers are currently selling their sheep at low prices, it will take several months for these savings to be passed on to consumers.

The challenges facing the industry

While the sheep surplus is a significant challenge for farmers, it is not the only issue they are facing.

Rising costs for fertiliser, interest rates, and trucking are putting additional pressure on farmers. At the same time, the meat processing industry is struggling with its own set of challenges.

The COVID-19 pandemic has disrupted the workforce, leading to a backlog in the processing of meat. This, combined with high operating costs and logistical issues, has resulted in a jam in the supply chain.

As a result, there is currently an influx of animals to be slaughtered, but it is taking time for the processors to catch up.

In the upcoming months, it is expected that retail lamb prices will continue to decline. Image source: Pixabay

The future of the sheep industry

The current situation in the sheep industry is a stark reminder of the volatility of the agricultural sector.

While the sheep surplus is a temporary issue, it highlights the need for sustainable farming practices and a resilient supply chain.

In the meantime, consumers can expect to see a drop in lamb prices in the coming months.

However, this will depend on a range of factors, including weather conditions, global market trends, and the ability of the meat processing industry to overcome its current challenges.

The sheep industry is a vital part of Australia's economy, and its health is crucial for the livelihoods of thousands of farmers across the country.

As such, all stakeholders–-from farmers to processors to retailers—must work together to navigate these challenging times.

Key Takeaways

• Australia’s sheep population has grown by 23 per cent since 2020 due to favourable rainfall and farming conditions.
• Prices of lamb have fallen significantly—nationally, retail lamb prices have dropped 9.5 per cent since last year, and lamb consumption has increased by about 14 per cent.
• The fall in sheep prices puts farmers in a difficult position, with many choosing to kill their sheep on the farm rather than sell them due to the high costs of transportation versus low return prices.
• Despite the meat oversupply, meat processors are struggling due to high operating costs and complications caused by the COVID-19 pandemic, resulting in a backlog in the slaughter and processing of animals.

While the current sheep surplus in Australia is leading to lower prices for farmers, it will take time for these savings to be passed on to consumers.

In the meantime, understanding the complexities of the sheep industry can help consumers make informed decisions about their food purchases!

So what do you think of this story, members? Have you been eating more lamb lately? Tell us in the comments below.

 

[Suzanne rose]

From Wednesday Woolworths have legs of lamb at $8 kg and coles have lamb loin chops normally $28 kg down to $18 kg just wished lamb cutlets would come down

 

[Suzanne rose]

I love barbecue chops and cutlets only. But can’t afford eitherthats why I’m a veggiehead

If I chose between veggies and meat I choose vegies. If I lived on my own I would only cook vegetables. My son is on a meat only diet for 6 weeks and he is literally only eating meat, no veg no bread , absolutely nothing but meat or protein eg eggs

 

[mylittletibbies]

From Wednesday Woolworths have legs of lamb at $8 kg and coles have lamb loin chops normally $28 kg down to $18 kg just wished lamb cutlets would come down

Me too, last week they had even gone up a $1 in Coles, now $43/kilo. Who actually buys them at that price. The poor farmers are struggling to get $20 to $30 for a whole lamb.,.but there is always some excuse as to why we pay such ridiculous prices.

 

[Luckyus]

From Wednesday Woolworths have legs of lamb at $8 kg and coles have lamb loin chops normally $28 kg down to $18 kg just wished lamb cutlets would come down

Invest in a boning knife and possibly buy in bulk?.

 

[Littleboy8]

Invest in a boning knife and possibly buy in bulk?.

it’d look like the chainsaw massacre in my kitchenthe blood being mine

 

[Suzanne rose]

it’d look like the chainsaw massacre in my kitchenthe blood being mine

 

[Suemac]

As a child, in the 60's, lamb was quite cheap and a side of lamb was a regular purchase for the family. Since the prices have escalated, I haven't been able to afford lamb for quite a long time. I look forward to the price coming down, then I will eat lamb again!

 

[Luckyus]

it’d look like the chainsaw massacre in my kitchenthe blood being mine

Are you that clumsy!!!!

 

[Macarj]

Me too, last week they had even gone up a $1 in Coles, now $43/kilo. Who actually buys them at that price. The poor farmers are struggling to get $20 to $30 for a whole lamb.,.but there is always some excuse as to why we pay such ridiculous prices.

Wow I thought I paid a lot for cutlets I pay $30 a kilo

 

[Luckyus]

Absolutelyit’s called osteoarthritisunfortunately

Snap, my friends call me the hospital pisspot because I am full of (medical) complaints!

 

[midgemills]

I remember buying lamb loin chops for 49 cents per kilo in the early 70's. Needless to say I don't buy lamb these days. On the very odd occasion that I go to my local club for lunch I will opt for roast lamb or lamb shanks as a treat.

 

[Littleboy8]

I remember buying lamb loin chops for 49 cents per kilo in the early 70's. Needless to say I don't buy lamb these days. On the very odd occasion that I go to my local club for lunch I will opt for roast lamb or lamb shanks as a treat.

Me alsohavent done that for a long time

 

[magpie1]

Don't worry, our Supermarkets will continue with the high prices for as long as they can....even if the farmers are giving them away to the meat processors.....they will bleed the lamb prices dry before they will pass on their profits to the consumers.

 

[Luckyus]

I remember buying lamb loin chops for 49 cents per kilo in the early 70's. Needless to say I don't buy lamb these days. On the very odd occasion that I go to my local club for lunch I will opt for roast lamb or lamb shanks as a treat.

Once upon a time Lamb shanks were given away.

 

[bluetang]

I remember buying lamb loin chops for 49 cents per kilo in the early 70's. Needless to say I don't buy lamb these days. On the very odd occasion that I go to my local club for lunch I will opt for roast lamb or lamb shanks as a treat.

I remember a side of lamb was $1.99 a kg Oh!!! days gone by.

 

[Tipsy]

Australia, the world’s largest exporter of sheep meat, is currently experiencing a sheep surplus. With an estimated 79 million sheep across the country, farmers are facing the lowest prices in years.

This oversupply of sheep has led to a drop in prices for farmers and, according to experts, should result in lower prices for consumers. However, the reality is more complex than it seems.

The current sheep surplus is a result of favourable weather conditions over the past three years.

Higher than average rainfall has led to an abundance of grass, allowing farmers to feed and breed more sheep.

Since 2020, the national flock has grown by an astonishing 23 per cent. This is the largest number of sheep, both for meat and wool, in Australia since 2007.

However, this surplus has led to a significant drop in prices. Less than two years ago, prices for Australian sheep were at record highs.

Now, farmers are struggling to make ends meet, with some even resorting to killing their sheep on their farms rather than selling them due to the low returns.

View attachment 33996

This year, the popularity of lamb shanks has surged by an impressive 200 per cent. Image source: Pixabay

The impact on consumers

Despite the low farmgate prices, consumers are yet to see a significant drop in the price of lamb at their local supermarkets and butcher shops.

According to Meat and Livestock Australia (MLA), retail lamb prices have only dropped 9.5 per cent since last year. This is despite the fact that about 70 per cent of the lamb produced in Australia is sold overseas.

The reason for this discrepancy lies in the complex supply chain of the meat industry. ‘Price flow from sale yard prices through to retail takes about eight months for both cattle and sheep,’ explained MLA spokesman Steve Bignell.

This means that even though farmers are currently selling their sheep at low prices, it will take several months for these savings to be passed on to consumers.

The challenges facing the industry

While the sheep surplus is a significant challenge for farmers, it is not the only issue they are facing.

Rising costs for fertiliser, interest rates, and trucking are putting additional pressure on farmers. At the same time, the meat processing industry is struggling with its own set of challenges.

The COVID-19 pandemic has disrupted the workforce, leading to a backlog in the processing of meat. This, combined with high operating costs and logistical issues, has resulted in a jam in the supply chain.

As a result, there is currently an influx of animals to be slaughtered, but it is taking time for the processors to catch up.

View attachment 33995

In the upcoming months, it is expected that retail lamb prices will continue to decline. Image source: Pixabay

The future of the sheep industry

The current situation in the sheep industry is a stark reminder of the volatility of the agricultural sector.

While the sheep surplus is a temporary issue, it highlights the need for sustainable farming practices and a resilient supply chain.

In the meantime, consumers can expect to see a drop in lamb prices in the coming months.

However, this will depend on a range of factors, including weather conditions, global market trends, and the ability of the meat processing industry to overcome its current challenges.

The sheep industry is a vital part of Australia's economy, and its health is crucial for the livelihoods of thousands of farmers across the country.

As such, all stakeholders–-from farmers to processors to retailers—must work together to navigate these challenging times.

Key Takeaways

• Australia’s sheep population has grown by 23 per cent since 2020 due to favourable rainfall and farming conditions.
• Prices of lamb have fallen significantly—nationally, retail lamb prices have dropped 9.5 per cent since last year, and lamb consumption has increased by about 14 per cent.
• The fall in sheep prices puts farmers in a difficult position, with many choosing to kill their sheep on the farm rather than sell them due to the high costs of transportation versus low return prices.
• Despite the meat oversupply, meat processors are struggling due to high operating costs and complications caused by the COVID-19 pandemic, resulting in a backlog in the slaughter and processing of animals.

While the current sheep surplus in Australia is leading to lower prices for farmers, it will take time for these savings to be passed on to consumers.

In the meantime, understanding the complexities of the sheep industry can help consumers make informed decisions about their food purchases!

So what do you think of this story, members? Have you been eating more lamb lately? Tell us in the comments below.

A lot of the meat sold as lamb IS NOT LAMB.... a Lamb ceases to be a lamb after it is 12 months old.... Most of what is sold as lamb is older then than almost 3 to 4 years older.... it is a general scam in the meat industry.... and how do I know this, It is because I was brought up on sheep and cattle stations right up until I left school....

 

[Littleboy8]

Is it tw

A lot of the meat sold as lamb IS NOT LAMB.... a Lamb ceases to be a lamb after it is 12 months old.... Most of what is sold as lamb is older then than almost 3 to 4 years older.... it is a general scam in the meat industry.... and how do I know this, It is because I was brought up on sheep and cattle stations right up until I left school....

Is it two tooth thenmy mum used to call old lamb that

 

[Tipsy]

Is it tw

Is it two tooth thenmy mum used to call old lamb that

Correct the hogget and if I remember correctly that is followed by Mutton

 

[Littleboy8]

Y

Correct the hogget and if I remember correctly that is followed by Mutton

Yep that’s right still tasted nice and had more flavourthan lamb today.