Local butcher Brian Penrose of Penrose Meats told The Leader consumers were already paying about 20 per cent more for lamb than they had been a year ago.

With a dramatic fall in Australian sheep numbers driving yard prices skyward further major price increases to shoppers now appear inevitable.

Country Quality Meats owner Greg Townsend attended the Tamworth lamb sale yesterday.

He said he had never seen lambs sell at such a high price.

“I’ve been attending yard sales for 35 years and (have) never seen lambs go for $135 to $140 per lamb like they did today,” Mr Townsend said.

He warned lamb would become too dear for people to consume and said people would look to alternatives such as beef and chicken.

Other Tamworth butchers confirmed they had noticed an increase in lamb prices at the local sales but were still purchasing from farmers around the region.

The rise in lamb prices has been blamed on a shortage of stock that has already cost 137 Peel Valley Exporters staff their jobs (see separate report).

In an investigation undertaken by The Leader at three local butchers and two supermarkets in Tamworth, prices ranged from $9.95 to $12.49 per kilo for a leg of lamb yesterday.

Loin chops ranged from $13.99 to $20.99 per kilo at the various surveyed stores.

Lamb was still cheaper than beef but local butchers expect further price rises will narrow the gap.

Kays Meats store foreman, Trevor Wann, said he had noticed a steady increase in lamb sale prices over the past six months.

“Prices are rising and they will affect everyone over the next two to three months,” Mr Wann said.

“Traditionally lamb was a pretty cheap meal for a family but now with food trends changing and the supply going down and with an increase in demand, we’re seeing a change to that.

“The price increase will affect everyone and they way people buy lamb will be

different.

“But if you really want something, you’ll still buy it – but instead of grilling or pan-frying lamb, people with will put it in a casserole or stew to make it go

further.”