Beef and lamb prices drop at supermarkets

Despite major falls for livestock at saleyards beef and sheep meat prices have dropped marginally at supermarkets. See the details.

Beef and sheep meat prices have dropped marginally at supermarkets, despite major falls for livestock at saleyards.

Beef prices at the retail level fell 1.2 per cent in the September quarter of this year, while the cattle saleyard index dropped 14 per cent in the same period.

According to Australian Bureau of Statistics data compiled by Episode 3, the indicative retail beef price was at $26.19/kg in September, down from $26.51 in the June quarter.

It’s similar for sheepmeat prices, with the retail lamb price down 4.7 per cent from $19.40/kg in June to $18.49/kg in September, while saleyard lamb prices have fallen 25.5 per cent.

Sheep and lamb sale at Bendigo.

Episode 3 founder and director Matt Dalgleish said there was never going to be the same level of volatility in the retail price as there was at the saleyard.

“There is a lack of transparency in the red meat space, and it is understandable people want to make sure there is no extra margin that is being captured that’s excessive, but when prices went up at saleyards, retail prices didn’t go up at the same magnitude,” he said.

“It is part of the commodity price cycle, processors were doing it tough, but now the pendulum has swung back and retailers and processors are making good margins, while farmers are having to tighten their belts.”

Despite the price drop not being fully passed on to consumers, both Coles and Woolworths are dropping prices for beef and lamb.

A Woolworths spokeswoman said they have dropped the price on 25 beef products in recent months, and from last week all their standard lamb cuts have been reduced in price by 20 per cent. This is part of its Christmas promotion which runs until December 27, with no confirmation on how prices will move once that period is over.

Meat in the supermarket has reduced in price, but not at the same level as saleyard prices.

“The saleyard price drops don’t reflect the reality of our supply chain. We’re currently paying our long-term suppliers more than the industry market indicators for both beef and lamb,” she said.

Lamb leg roasts at Woolworths have come down from $15/kg in June 2023 to $8/kg currently, which is the lowest promotional price since February 2017, while lamb cutlets are down from $43/kg to $34/kg.

Woolworths 1kg beef mince has dropped from $12/kg in August to $11/kg.

Similar price drops have occurred at Coles recently.

Coles general manager meat deli and seafood Martin Smithson said: “We know it’s been a tough time financially for many Australians and we are committed to lowering the price on the products they need the most to feed their families.”

Coles also cut popular cuts of lamb by 20-36 per cent last week, with lamb leg roasts down from $10/kg to $8/kg. Coles’ 3-star 1kg beef mince was reduced from $12/kg in April to $11/kg in August.

Coles has cut meat prices. Picture: David Mariuz

It comes as shadow Agriculture Minister David Littleproud is calling on the Labor government to direct the Australian Competition and Consumer Commission to hold a price inquiry.

“Lamb prices have drastically reduced and cattle prices have fallen by about 60 per cent. Yet families at the supermarkets have barely noticed a difference in prices,” Mr Littleproud said.