Goat, lamb prices hit record levels in South Australia thanks to short supply of water and high demand

Heavy weight lambs are going for $300 for the first time, because of a tight supply from a long drought.

Thomas Foods International has paid record prices for goats and lambs in the past week, as it looks to shore up supply through the drought.

At the weekly sale at Dublin this week, heavy weight lambs reached $300 for the first time ever.

Meanwhile Thomas Foods are paying $10 a kilogram dressed weight, for goats that dress out at six kilograms or more, equating to an average of $150 an animal.

Thomas Foods International national livestock manager for small stock Paul Leonard said the company was paying the high price for goats due to a combination of strong demand and tight supply.

“Traditionally, through the autumn/winter period, it’s more difficult to procure goats,” he said.

“Goats tend to travel a lot more in summer and come out to water (making it easier for pastoralists to muster them).

“At the same time that there’s been a shortening in supply, demand has increased as well.”

Mr Leonard said the demand for goat meat was rising locally and globally.

“We’re getting a broader clientele of food appreciators that are starting to experiment with goat.

“Historically, on a global level, goat was consumed more by the Hispanic population but it’s now gaining mainstream importance, as people become more educated around the cooking process.”

Lamb prices have reached record levels in South Australia. Picture: Simon Cross

Mr Leonard said the relatively low exchange rate, with the Australian dollar sitting at 69 US cents, was also helping the business in the global market, allowing Thomas Foods International to pass on attractive returns to farmers.

“With the Australian dollar quite low, it’s a lot more favourable from an exporting perspective,” he said.

Mr Leonard said goat prices had been rising in the past four years, with the drought greatly affecting numbers coming out of the western division of New South Wales and the pastoral areas of South Australia.

“I think it’s reasonable to expect we’re very near or already at the top for prices,” he said.

“The challenge for all of us in the supply chain is how to keep goat meat affordable, so we can continue to grow demand.”

Mr Leonard also bought the pen of $300 lambs at Dublin this week, which he said were of exceptional quality.

“They were beautifully feed and bred lambs and on a per kilogram basis, they made similar money to our contract prices.

“The record pen made about $7.60 a kilogram, but there were actually trade (lighter) lambs that made $8 to $8.20 a kilogram at Dublin this week.”

Mr Leonard believes lamb prices are also nearing their peak.

“We are starting to see, with prices at these levels, some push back domestically and globally, which is to be expected,” he said.

“No one has a crystal ball but I think lamb prices are getting up there and are probably somewhere near their top at the moment.”

It was not just lamb producers making good money, but mutton has also reached a high of $6 a kilogram, which was historically very high.

Mr Leonard said a lot was hinging on how this season plays out across South Australia and the nation.

“We really need a return to a normal, or preferably an above average season, so that people can start to breed up stock numbers again,” he said.