Beef and lamb prices hit highest level since 2022
Lamb and beef retail prices have hit record highs after a bumper quarter, on the back of increased livestock prices and supply chain costs.
Retail red meat prices have soared to record levels, with industry leaders confident the sector is in a good spot in the lead up to summer and barbecue season.
Meat and Livestock Australia’s most recent data to the end of September shows that lamb was trading for an average $20.49/kg while beef was at $27.34/kg - up from $18.62/kg and $25.75/kg respectively last year.
Both prices are at their highest level since mid-2022.
Stone X livestock and commodities manager Ripley Atkinson said a combination of increased livestock prices, despite Australia producing a lot of product, and higher supply chain costs have led to the increase.
“Q3 had incorporated a fairly sharp rally in both lamb and cattle prices at a livestock level, so you are still clearly seeing that start to flow through to the retail level,” he said.
“Inflation is remaining very sticky, costs throughout the supply chain have gone up - the cost of fuel, processing, packaging and post farmgate (activities) are contributing to that increase in prices.”
Mr Atkinson said cattle prices had risen since Q3 ended again, and that the market’s expectations on inflation looked relatively stable, so there was no reason why prices couldn’t continue to rise.
“Farmers are receiving good money for their livestock, the retail consumer is quite attached to the consumption of red meat and the combination of both of those at the domestic level places the red industry in a good spot,” he said.
“We’re coming into summer and barbecue season, and the signals remain strong for us to produce a lot of (red meat).”
Victorian Farmers’ Federation livestock president Scott Young said it was understandable the prices had reached these levels, amid a worldwide shortage of red meat, and an increase of $2-3 for growers over the past year.
“We have a really good export market as well and our product is priced on a world market, so I think it’s looking very positive for the red meat sector at the moment,” he said.
“I don’t know if (prices) will continue to rise, but they might find a level somewhere over the next six months.”
