The Australian Ag podcast: Gundagai Meat Processors director Will Barton

Lamb prices have fallen to levels not seen for years, but that’s not good for anyone. Hear why on the latest edition of the Australian Ag Podcast.

It could be years before lamb prices rise back to the levels seen over the past few years but one processor believes rates could have hit the bottom.

Gundagai Meat Processors director Will Barton told the Australian Ag Podcast a softening of world demand, high global stocks of protein and increased supplies had conspired to bring down lamb prices.

But he was optimistic there could be an upside to the current lower prices, which could flow on to increased demand globally and eventually bring rates up again.

“It will be a while before we come back to the heady days of two to three years ago, but I think we should start to see ourselves normalise above that $6/kg level,” Mr Barton said.

And while some producers may think processors revelled in the low rates, he said this was not the case.

Mr Barton said he was shocked with the price falls which were “so quick and so sharp”.

“I would think that we’re probably at the bottom now … and certainly it’s in no one’s interest for the price to be this low for either processors or producers.

“Obviously we want as many people growing lambs as possible around us so we need the incentive to be right.”

Gundagai Meat Processors director Will Barton.

Mr Barton said there was an awareness within the processing industry that there would be a dip in demand for red meat post-covid.

As consumers had less time and returned to work, they opted for pork and chicken, Mr Barton said. Cost of living pressures also meant that red meat was substituted for cheaper proteins.

And the high prices of the past years had seen lamb taken off menus, something that may turn around especially in the United States where lamb consumption was not as entrenched as in Australia.