Lamb forward prices have been put out for $10.50/kg in spring

In an unusual move a lamb processor has put out forward contracts to spring, pointing to continued high prices and concern over low supplies. But how high can lamb go?

The highest money paid for lambs in spring could be on the cards.

A forward contract put out by Minerva Foods, previously Australian Lamb Company, late last week is offering $10.30/kg and $10.20/kg carcass weight for crossbred sucker lambs delivered to its Colac plant in the first two weeks of November, an unusual move this far out from spring.

But it cements how confident processors are that the current record high lamb prices could continue for at least the rest of 2025 due to low supplies.

And with the benchmark lamb price previously at $8/kg, it now points to a probable new benchmark of $10/kg for lamb.

It is the highest carcass money the industry has seen for a period which is traditionally associated with a spring flush of new-season lambs from southern grazing areas. It follows Minerva offering up to $10.50/kg for lambs supplied in October, and $10.80/kg in September.

There is no upper weight limit on the Minerva contract, seen by The Weekly Times, which just calls for lambs above 20kg carcass weight.

Bidding for lambs with the right specifications. Picture: Zoe Phillips

Elders Wagga Wagga livestock agent Adam Boyd said there were very few lambs with the weight in them to make the record prices that have been experienced recently.

Mr Boyd said there were a lot of incentives for producers to finish lambs and the forward contracts out until November were promising.

“You can get a forward contract in spring of $10/kg for Merinos and then into the start of November there are prices of up to $10.80 and the crossbred lambs getting $11/kg,” he said.

“Those contracts are deep into the season, and they are offering that money right out until the middle of November ... that’s a long way ahead and people can plan,” he said.

Mr Boyd said there was also demand for sucker lambs with new-season prices trending at 700c/kg to 750c/kg liveweight.

“There is a lot of confidence going forward, and the rain this week is only going to help,” he said.

Meat and Livestock Australia manager of market information Stephen Bignell said the most significant impact on the prime lamb industry was the fact there had been two consecutive high slaughter years.

For the financial year to June 2025, sheep slaughter was at approximately 23.1 million head, slightly down from 23.4 million in 2024.

Mr Bignell said the reason extra heavy and trade lambs were so close to parity was the fact there were not enough extra heavies meeting specifications.

Earlier this week the national trade lamb indicator fell just shy of another milestone when it went within a cent of breaking through $12/kg. It was trading at 1185c/kg on Tuesday.