LAMB prices are set to rise by 15 per cent in 2014, according to an Australian Government forecast.
Going on the current price this would equate to a 59 cent increase per kilogram (clean weight) to 445c/kg, according to data released by the Australian Bureau of Agricultural Resource Economics and Sciences (ABARES).
Meat & Livestock Australia (MLA) market analysis manager Tim McRae said this was underpinned by a reduced supply of lambs predicted through the market due to numbers being offloaded in 2013.
Drought in western and central NSW last year meant slaughter rates surged in the first half of 2013 to total 21.1 million head in 2012-13.
"This time last year there were some very high numbers coming in… we'd probably expect to start seeing lamb numbers come back," he said.
"I think there's still some good lamb numbers now but that is compared to the highest numbers ever."
The decrease in numbers is expected to boost export prices, which is also partly due to less supply coming from New Zealand in wake of their 2013 drought.
According to the ABARES report, lamb exports are expected to rise 9pc to $1.18 billion in 2013-14.
Providing the Australian dollar remains lower on the greenback, the increased lamb price shouldn't deter existing and budding international markets, Mr McRae said.
