Domestic Price of Sheep Meat

IBISWorld forecasts the domestic price of sheep meat to increase 3.8% during 2023-24 to $155.9 per head. Recovering export demand, especially as the global food-service sector rebounds from the pandemic, is expected to exert upward pressure on prices. Also, the drop in sheep meat production recorded last year is set to contribute to tighter domestic supply and higher prices in 2023-24. However, given the increase in the domestic price of wool, farmers may prioritise wool production over meat, potentially resulting in a decreased meat supply, leading to maintained or raised prices for mutton and lamb.

A range of factors influences the domestic price of sheep meat. As sheep are primarily used for their meat or as a source of wool, the domestic price of wool can significantly affect sheep meat prices. For example, a substantial rise in the price of wool, influenced by local and overseas factors, encourages sheep farmers to maintain sheep for their wool rather than send them to an abattoir, reducing sheep meat production volumes. This, in turn, typically boosts sheep meat prices. Conversely, lowering the domestic price of wool encourages sheep meat production, often decreasing lamb and mutton prices.