February's sheep market update

Highlights for sheep

• The Australian lamb market is expected to be relatively steady in February. The market will gain support from continued high processing rates. Although strong supply of lambs and dry conditions in key growing areas will limit upside.
• Lamb prices have eased to start 2025 after peaking just prior to the Christmas break. The National Trade Lamb Indicator (NTLI) reached above 900 c/kg in December but has eased back to around 770 c/kg. At this level, the NTLI remains 1.2 per cent higher than the five-year average.
• Processing rates have continued at heightened levels in 2025. Sheep and lamb processing rates took only two full processing weeks to climb back above the 700 thousand head combined slaughter mark. There were reports that processors were well booked out in January, which has seen some weakness in prices. This contributed to the price spike in December but is expected to support prices into February as processors re-enter the market.
• Mutton markets started 2025 with a bang but have since dropped to below pre-Christmas levels. The National Mutton Indicator (NMI) is currently at around 370 c/kg. This marks a 21.8 per cent increase year-on-year but still trails 20.3 per cent below the five-year average. Mutton supply is expected to slow in the first half of 2025 following high rates in the second half of last year. This will support prices to move back towards average levels. Although dry conditions may see supply remain elevated for longer.

Joe Boyle

Agricultural Analyst

Joe is our Insights specialist for sheep and wool industries. He hails from a cropping and sheep farm in northwestern Victoria and has studied a Bachelor of Agriculture at the University of Melbourne.