Restocker lamb prices surge by 105%
08 August 2024
Key points:
- Lamb prices have surged nearly 900¢/kg cwt over the past month, drive by export demand and a protein deficit in the US.
- The Heavy Lamb and Trade Lamb Indicators have increased by 66% and 69%, with the Restocker Lamb Indicator soaring by 105%.
- The Trade Lamb Indicator and the Heavy Lamb Indicator are 814¢/kg cwt and 808¢/kg cwt respectively, reflecting ongoing price rises despite increased production.
The lamb market has experienced a meteoric price rise over the past month, nearing 900¢/kg carcase weight (cwt). This upward trend is driven by the export market, particularly due to a protein deficit in the US. Examining the price per head provides insight into the value received for each individual animal.
Year-to-date, the Heavy Lamb and Trade Lamb Indicators have risen by 66% and 69%, respectively. The most substantial increase occurred in the Restocker Lamb Indicator, which surged by 105%. Despite increased sheep numbers and record production levels, prices continue to rise in 2024.
As of 11 August, the Trade Lamb Indicator price was 806¢/kg cwt, while the Heavy Lamb Indicator was slightly higher at 820¢/kg cwt. This indicates that the cost per kilogram for trade lamb is lower compared to heavy lamb. On a per head basis, heavy lambs are $47 more expensive than trade lambs, reflecting the weight difference between the two categories.
Following typical seasonal trends, both heavy and trade lamb prices have continued to rise. Heavier lambs are expected to receive a premium compared to lighter lambs, despite the higher underlying cost for heavier lambs.
