Elevated mutton prices off the back of heavy demand coinciding with easing lamb prices has seen the price relationship between the two edge closer.
Last week the National Mutton Indicator and the National Lamb Indicator (NTLI) moved closer together with mutton sitting just 17 per cent below the price of lamb.
As well as this being the closest the respective indicators have been on record, it is well below the five-year average of 32pc discount.
According to Meat and Livestock Australia (MLA) reports, attributing to this is mutton prices rallying off the back of ongoing demand out of China, albeit down on 2019 levels, where African Swine Fever (ASF) continues to impact pork production.
Exports of mutton to the USA have slightly increased during 2020 further supporting mutton prices, despite COVID-19.
Mercado managing director, Robert Herrmann, said to see it sitting at these levels is quite extraordinary, but said it ‘grew up’ when industry slaughter numbers were at their highest.
“For the last 10 years mutton has averaged almost 50 per cent of the price of lamb – half the price,” Mr Herrmann said.
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