The country's national day traditionally sees a surge in demand for lamb chops.
Fifth-generation Sassafras farmer Tony Robertson, Franklin Pastoral Co, welcomed the love Australian consumers show for premium quality lamb, produced on Tasmania's pastures.
He said being able to supply the supermarket's grass-fed Graze Tasmanian lamb program presented an opportunity to create another much-needed market.
"It's a huge boost that's giving the industry a helping hand forward on supply that we need since companies like JBS shut the door in Tasmania which meant we had to look for other markets," Mr Robertson said.
"Coles by driving a particular Tasmanian brand has given us an opportunity which has been extremely helpful."
The Graze lamb range is sourced purely from Tasmanian lamb producers.
Farmers supplying the label all use pasture-grazed animals to produce a better quality product, Mr Robertson said.
Farmers were supported by Coles because the State produced food in the best temperate-growing area in the country, he said.
Coles said this week it would sell more lamb than at any other time of the year, with sales of lamb chops increasing by 20 per cent compared to December 2020.
Coles meat general manager Charlotte Gilbert said Graze lamb offered customers high quality, grass-fed options, and the range helped reinvigorate Coles' lamb offer.
"We sell over 20 million kilograms of lamb each year, so we know our customers already love lamb," Ms Gilbert said.
The introduction of Graze lamb created a new market for 65 Tasmanian producers, with Coles increasing the number of lambs expected to be purchased from around 100,000 in 2020 to 180,000 this year.
Third-generation farmers Lauchie and Sarah Cole own a 1000 hectare mixed property in the Northern Midlands and said it was the perfect place to produce quality grass-fed lamb.
"We pride ourselves on producing a premium product in all aspects of our business," they said.
"When given the opportunity to participate in the Coles Graze Tasmanian lamb program, we were 100 per cent committed.
"The program provides us surety to supply and the ability to lock in price and quantities allowing us to manage commodity price risk and of course the opportunity to support a Tasmanian branded program, influencing consumers to choose a sustainable grass-fed product.
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