Australian Sheep Prices Hit Record Highs Amidst Low Flock Numbers

Sheep have never been more expensive in Australia than right now, with the national mutton indicator surging beyond 900 cents a kilogram for the first time.

At Wagga Wagga on Thursday, the local market report said sheep prices reached "new heights across various classes, with many in the yarding surpassing the 1,000c/kg [cwt] mark".

"Heavy ewes sold for prices ranging from $255 to $396 a head, averaging 1,009c/kg carcass weight," the report said.

At Dubbo on Monday, a pen of crossbred wethers topped the sale, fetching an incredible $392 each.

Meanwhile the national restocker lamb indicator reached a new high during the week of 1,278c/kg (cwt) and the national online lamb indicator hit a record $257 per head.

For context, just three years ago the national mutton indicator was hovering slightly above 100 cents a kilo and some farmers were shooting sheep rather than losing money by sending them to market.

What's driving the record highs?

Rain and mild weather has put a lot of confidence in the market this month.

There's also strong demand and plenty of buyer competition, but arguably the biggest reason for the price surge is the lack of numbers.

"I've been told a lot of Tasmanian shearers have run out of sheep at the moment," market reporter Richard Bailey told the Tasmanian Country Hour.

"That hasn't happened for more than a decade.

At Ballarat on Tuesday, the local market report said it was the smallest yarding for some time, with just 1,592 sheep penned.

It said mutton numbers were limited "in all weights and grades" with sheep fetching an extra $10 a head compared to last week, and some crossbred ewes reaching $344 each.

Meat and Livestock Australia says the national flock is at record lows and predicts it will continue to dwindle over the next few years towards 64 million head.

An article in the Land Newspaper this week posed the question: "Where are the breeding ewes for a flock rebuild?"

Wool sales lift by $675 million

Meanwhile, Australia's wool market eased in the final week of the 2025/26 season, with the benchmark Eastern Market Indicator (EMI) falling 46 cents to 1,943c/kg.

According to Australian Wool Innovation (AWI), the EMI finished the season 61 per cent higher than last year.

"Although auction offerings were 3.4 per cent lower than the previous season, the total value of wool sold through the auction system increased by $675 million [to more than $2.6 billion], highlighting the strength of the market over the past 12 months," AWI said.

The wool market has definitely rewarded those who have stuck with merinos this year, but clearly a lot of growers have either left the industry or downsized, with the nation's wool clip at its lowest level in 100 years.