Rural & Agriculture
24 September, 2025
Sheep shortages driving up prices
PADDOCKS around the region are looking green at the moment following solid rainfall however farmers will be contending will be grappling with the effects of a dry 2025 for a long time to come.
Sheep numbers across the country are sharply down and the effects are reverberating locally but for now, Nutrien Livestock account manager David Preston says for the most part, there’s plenty of reasons for farmers to remain committed to sheep.
“They’re sorta talking it could be 20 to 30 per cent,” said Mr Preston when asked about industry estimates regarding sheep numbers.
“Most people, between having less lambs and having sold breeding ewes because of the dry conditions, they’re just down on their numbers overall.”
Mr Preston said market conditions are very strong for lambs and that it’ll likely stay that way because of low stock numbers.
“That’s going to have an effect going forward, at the moment the market is very strong and it could stay strong because of the lack of supply and the good demand,” he said.
“We had a seminar at our office in Ararat and had one of the market analysts speak to us, they said it could take three or four years to build back up to the numbers where we need to be to be able to supply the markets.
“The prices are high at the moment, we’re selling lambs now as restock-type lambs, so other farmers buy them, they’re paying $200 for them or up to it, where your good, finished processing lambs.”
The industry as a whole has issues with supplying products to end consumers but the high prices for sheep means farmers are still finding a way through the current climate.
“What we’ve lost in numbers we’re recovering in price a bit,” said Mr Preston.
“They killed a record amount of sheep and lambs last year, and 2025 is on track to do the same, so the thing is they’re developing markets all the time overseas and increasing the kill capacity in Australia, and now there’s a worry they’re not going to be able to supply the markets they’ve tapped into.”
Farmers in the region are resilient and are accustomed to playing the long game, and Mr Preston believes the industry will come out the other side of the current sheep shortages in a strong position.
“If the prices stay where they are, people will definitely stay in sheep and try to get their numbers back to where they need to be, it’s just going to take a bit of time, that’s all,” he said.
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