Australian lamb prices drop 2.6% as global markets soften
Australian lamb fell to 1142c/kg in September, down 2.6% from August, the largest decline among major markets.
Australian lamb prices eased from 1172c/kg in August to 1142c/kg during September after hitting record highs during winter. The sharp September drop outpaced falls in other major markets: New Zealand prices held steady at 960c/kg, UK prices fell 1.8%, and European prices barely moved.
Australia's price premium over New Zealand compressed from 22% to 19% in a month, reversing gains made earlier in the year when prices sat 40% above Kiwi levels. Despite the September decline, Australian prices remain historically strong and still command substantial premiums over northern hemisphere markets.
The key question for spring will be whether additional supply from seasonal turnoff continues to soften prices or whether international markets stabilise.
- 1142c/kg
- September Australian price
- 1172c/kg
- August Australian price
- 960c/kg
- New Zealand price
- from 22% to 19%
- Premium compression
Why it mattersProducers face lower returns at a critical selling season; narrowing premiums affect export competitiveness against their closest rival.
AustraliaAustralian farmers and exporters see reduced income from lamb sales, though prices remain well above historical averages.
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