Record winter for sheep and lamb markets as tight supply drives prices

04 Sep 2026

Key points

Tight supply drove record winter lamb and sheep prices across key indicators.
2026 winter sheep yardings in Victoria and SA penned record lows.
A positive start to the lambing season across most sheep regions.

Australia’s sheep and lamb market experienced an eventful winter in 2026.

Widespread, and in some cases drought-breaking, rainfall across much of southern Australia gave producers the confidence to begin rebuilding flocks after years of feed and water scarcity. The renewed optimism drove strong restocker demand.

Lower meat protein supply supported strong processor demand for both lamb and mutton. The result led both restockers and processors to compete strongly for available stock in the saleyard.

Traditional buying patterns became increasingly blurred as buyers targeted similar categories of sheep and drove lamb and mutton prices to record highs. Several sheep and lamb market indicators reached record levels during winter 2026, as summarised below:

Trade Lamb Indicator – 1,244¢/kg carcase weight (cwt) on the week ending 12 July 2026

Light Lamb Indicator – 1,184¢/kg cwt on the week ending 12 July 2026

Mutton Indicator – 916¢/kg cwt on the week ending 12 July 2026

Merino Lamb Indicator – 1,152¢/kg cwt on the week ending 12 July 2026

Restocker Lamb Indicator – 1,235¢/kg cwt on the week ending 28 June 2026

Online Lamb Indicator – $253/head on the week ending 7 July 2026.

While indicators have since eased from their record highs, the historically lower meat protein supply continues to support demand.

Despite much improved expectations for lambing numbers in 2026, a flock rebuild will take time.

State-by-state yarding breakdown

NSW

NSW lamb yardings totalled 827,600 head between June and August, down 29% from last winter and 31% below the five-year average. Sheep yardings reached 270,278 head, a decline of 45% year-on-year.

Victoria

Victoria recorded one of the sharpest declines in yardings over winter. Lamb yardings totalled 239,073 head, down 37% from 2025 and 36% below the five-year average. Sheep yardings fell 37% YoY to 77,762 head, marking the smallest sheep yarding at Victorian saleyards since records began in 2000.

SA recorded another significant decrease in supply over winter. Lamb yardings totalled 55,479 head, down 44% year-on-year and 42% below the five-year average, making it the second-lowest winter lamb yarding on record. The only lower result was recorded in 2022, when lamb yardings reached 40,373 head. Sheep yardings fell even further, declining 51% year-on-year to just 11,894 head, the smallest winter sheep yarding on record for the state.

Tasmania

Lamb saleyard throughput fell 45% YoY to 10,045 head, while sheep yardings reached 4,920 head, a 70% drop YoY.

Lamb yardings eased 32% YoY to 145,224 head, but remained 15% above the five-year average. Sheep yardings totalled 48,732 head, down 46% year-on-year, although only 8% below the five-year average.

Queensland

Queensland recorded lower yardings over winter with lamb yardings reaching 4,885 head, an 18% year-on-year decline. Sheep yardings fell more sharply, dropping 39% to 3,597 head.

Looking ahead

The immediate outlook for spring points to continued tight supply.

While sheep and lamb indicators have eased from the record highs experienced over winter months, decreased meat protein supply continues to underpin demand.

Seasonal conditions have improved across many of Australia's key sheep-producing regions, supporting optimism for a strong 2026 lambing season. This confidence has been reinforced by reports of solid numbers of new-season lambs appearing at saleyards in recent weeks.

Apart from some lower rainfall areas, including south-west WA, eastern Victoria and parts of Tasmania, rebuilding the national flock from current levels will take time limiting any rapid increase in supply.

Aus rainfall map

Australian rainfall June-August 2026. Source: Bureau of Meteorology

Attribute content to Alex Fry, MLA Market Information Analyst.    

Information is correct at time of publication on 4 September 2026.

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