RISING saleyard prices for lamb have lifted the producers’ share of the retail dollar higher in the September quarter, with market conditions pointing to a continuing positive trend.

Episode 3 analyst Matt Dalgleish has reported that stronger saleyard prices have lifted the lamb price index 19 percent from 365 to 436 over Q3. The retail lamb price index in that period increased by 7.7pc, rising from 270 to 291.

Mr Dalgleish said this has meant that the producer share of the retail spend for sheep farmers is pretty much back on track according to the long term trend growth seen since the late 1990s.

“The lamb producer share sits at 61.9pc, marginally above the trend line, after staging an increase from 55.8pc in the June quarter,” he said in his Episode 3 analysis today.

Mr Dalgleish said lamb supply and global sheep meat demand indicates that saleyard prices will be buoyant for some time.

He said it looks as though the sensitivity to the retail pricing versus the saleyard movement has been greater with lamb, whereas the retail beef prices have not been as responsive to the saleyard.

The comparison of saleyard versus retail prices is produced in conjunction with Beef Central and Sheep Central.

Source – Episode 3.