MLA’s Jason Strong explains retail meat pricing disparity

Beef Central, 13/10/2023

MEAT & Livestock Australia managing director Jason Strong appeared on national morning television program Sunrise recently, quizzed by the hosts about the lack of response in retail pricing for lamb in the face of this year’s livestock price collapse.

Rightly or wrongly, there’s clearly a growing view amongst some consumers that supermarkets are this year profit-taking at the expense of lamb and beef producers who have watched their livestock prices slashed by a half to two thirds since the start of the year.

Supermarkets have applied some modest retail price reductions on some items, but nothing like the price trend seen for livestock. But equally, supermarket retail pricing tracked nothing like the phenomenal price rises that were seen for all slaughter stock over the 2021-22 period.

“Lamb (livestock) prices have dropped up to 70pc in the past year, but it’s a different story in the supermarket, where lamb prices have only dropped by 7pc, over the last three months,” the Sunrise hosts said in their introduction.

“So when will the savings (ie cheap livestock) be passed on to us at home?” they asked.

Mr Strong told viewers there were two things driving the fall in livestock prices.

“The main factor is about supply. The last few years has produced a 23pc increase in the size of the Australian flock – the largest in 15 years,” he said.

“We’ve had three fantastic seasons in a row, so we’ve had increased productivity, and that increase in supply is now coming onto the market. That’s the biggest driver that’s putting pressure on prices for sheep in the saleyards.”

While he did not mention the second factor (perhaps due to time), it is assumed it would have been the flat international trading environment for sheepmeat, as well as beef.

“So if lamb (livestock prices) are dropping like this in the saleyards, why am I still paying so much more for lamb in the supermarket? How long will it take to flow on?” one of the presenters asked.

‘It is flowing through,” Mr Strong said.

“But what we need to remember is that the price of the animal is only one of the component costs that contribute to the price of the product at retail.

“Even though it may seem like a smaller price reduction in price at retail, we’re seeing the increase in volume of sales, both domestic and export. There’s been an increase of more than 12pc in domestic sales volume, and more than 22pc increase in export volume.

But live animal price was only one of the components that make up the retail sticker price, Mr Strong said.

There are so many other components along the supply chain (rising energy costs, transport etc) that are now much more expensive than what they were earlier.”

“So how else can we save if we want to access cheaper lamb at the moment?” one of the Sunrise hosts asked.

“It (livestock price movement) will continue to flow through,” Mr Strong said, “but it’s not going to be at the same proportional shift that we see with the livestock price.”

“But what’s most important in times like this is the relationships we build along the supply chain. From a consumer’s point of view, it’s understanding the supplier of your retail meat – whether that’s a supermarket, an independent butcher, or direct from the farmer – because all of those people have an increase in supply.”

“It’s how the consumer builds a relationship with them that will be the best way to capture those savings,” Mr Strong said.

“And the other thing to look at is different cuts and different items. While the average retail price has come down (to some extent), the price of lamb legs has come down more than the price of lamb chops or cutlets.

“So building that relationship with your retailer, and understanding and keeping an eye on how those different cuts are shifting in price is important.

“The other option, of course, is brilliant local butchers – consumers might be able to get some savings there if it’s not being passed on at the national supermarkets,” one of the Sunrise hosts suggested.

Mixed responses from consumers, producers…

Once re-posted onto social media, the item attracted diverse, and sometimes critical views. Some clearly felt that MLA was unnecessarily defending the national supermarkets:

I buy my meat from a butcher, not supermarkets, wrote Lynette Cox

Cmon Jason! You seem to be defending the supermarkets. Don’t forget who you are meant to represent and who pays you! wrote Colin Bannerman

18 months ago, live lamb was $200+ a head. $30kg average at the store. Now a live lamb is $5-$10. $25kg average at the store. Who is making the extra $200 per lamb extra? Wholesale and retailer – not the farmer! Farmers will go broke. Beef is going the same way, wrote Troy Simmons.

Find a producer who sells direct to the consumer, suggested Dave Wheaton.

Here’s a thought. How about all of us lamb producers have a ‘GAP YEAR’ and don’t mate our ewes this year. See how that works, wrote Forrest Farm Valley.

MLA representative not wanting to support local butchers – only cares about big supermarkets wrote Regan Goddard-Borger

As a sheep producer and someone that has to pay a membership to the MLA, it would be nice to hear from this peak body directly. Now if I’m doing my maths right, a 22pc increase in sheep production to meet an increase of over 30pc of processed product does not match up to being an oversupply. Especially if we are looking at liveweight production vs processed demand. Be nice to have some real numbers to help producers understand how we are getting such a raw deal in a time when all our input costs are at record highs, wrote Rebecca Glencross

It’s always the farmer that takes the loss. No one else in the supply chain takes a loss wrote Hall Forrest Farm.

Good seasons create abundance. Markets cater for end user demand. Want less demand, make prices higher in supermarket, that then suppresses the primary producer. When primary producer cant produce in ordinary seasons, supermarkets puts prices higher. Deregulation encouraged by supermarkets and paid sponsors create this scenario, wrote Andrew Carvill.

You can buy a leg of lamb for $8.99/kg online at the moment, where a supermarket price is around $20/kg wrote Graeme McLeod.







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  1. Erica Halliday, 16/11/2023

    I understand it’s a tough time for us farmers. What I don’t understand is the personal attacks from readers on one of our greatest representatives in Jason Strong – an intelligent, positive and practical person working his guts out for this industry. Interviews are always skewed, sensationalised and newsworthy. We talk a lot about mental health in the bush but we don’t mind pulling the knives out do we?

    • George Willows, 17/11/2023

      I haven’t seen any personal attacks on Mr Strong, just criticism of comments that he made. I watched his interview and was disappointed like many others with what he had to say. I don’t think the interview was skewed or sensationalised, he said what he said.

  2. Gil Schmidt, 18/10/2023

    If one compares Grid prices October 2021 MSA Seers $8.00 per Kilo and second grade cow $7.50 c/kg with next weeks grid of $4.25c/kg MSA and 2nd Cow @ $3.45 it is difficult to accept that the retailers are not ripping off consumers. Obviously Jason Strong is neither a producer nor shopper otherwise he would realise producers are feeling the pain, while the duoply is realising the gain.
    I would have expected Jason to champion the cause of producers who pay his wages instead of Woolworths and Coles.

  3. Peter Vincent, 16/10/2023

    That interview and subsequent comments do nothing for the industry or Meat and Livestock Australia, Jason.
    Totally defensive of retail margins and completely irrelevant answers to very simple questions. Imploring consumers to build a relationship with a supplier is absolute nonsense when the cost and quality of the product is exactly the same for EVERY customer. It’s of no consequence to retailers if there is a current glut of red meat in the chain; the supermarkets et al are more concerned with maintaining a high margin per unit than discounting to increase volume of sales.

    • Andrew Dunlop, 17/10/2023

      Well said! MLA was given a golden opportunity to support its shareholders and failed dismally!

  4. Leanne Currans, 14/10/2023

    All of lamb and beef farmers need to stop selling for 6 weeks minimum until the supermarket shelves are empty to show city people where the meat comes from and what its like not to have hard working Australian farmers.

    • Andrew Dunlop, 17/10/2023

      A better idea would be for all Australian farmers to call a “No supermarket day” where all Australian farmers purchased their essentials including meat from independents rather than the oligopoly of the red and the green!

  5. Ronald Campbell, 14/10/2023

    As a producer the drop in lamb prices are dramatic ..less than cost of production.
    However the prices for many are down to $1.00 and $10 to $20 are not the meat that you buy in the butcher shops.
    That meat is only fit for manufacturing as it would be tough and tastless.
    The meat in the supermarket.butcher shops is a finished product that has been grain fed..assisted ..or on the remaining pasture or cereal crop.
    The cost of supplying this product in good seasons and drought is very high as the I puts cost increase to meet that
    Meat quality specification .
    Yes the price in the retail outlets should reflect this yo as greater degree as our costs have more than doubled.
    The price for the lamb finished article instead of receiving $7 to 8 per klm is now at , $3 or$4..
    This is below cost of producing the finished article.
    Yes the oversupply is what is triggering the downfall in prices of lamb and beef.
    The same anallgy is for beef also

  6. Fran Thomspon, 14/10/2023

    Jason, I am sure your role description is to support the Australian MLA members ! Do you understand what will happen if producers can’t obtain better prices ??

  7. Andrew Dunlop, 13/10/2023

    I was under the impression that MLA was a producer company, funded by producers. Jason Strongs failure to support producers in this interview is a dereliction of duty. Frankly speaking I am appalled.
    It could not be said that the supermarkets have shown any leadership or corporate social responsibility in fighting inflation and supporting consumers with lower prices, in fact it would appear quite the opposite, that they have used their market power to increase their profits.

  8. Peter Hamilton, 13/10/2023

    Price fluctuations are always the highest closer to the primary product/producer.
    At the retail end there is less fluctuation.
    This is the reality in an open and free market.
    The various players along the value chain will always hold onto margins in times of rapid price movements as long as they can.
    It’s called capitalism and private enterprise.
    Competition of course is the great leveller.

    MLA are fence sitters. They are not gonna pin anything on anyone anytime

  9. Tom Lin, 13/10/2023

    MLA should be promoting direct sales to bypass supermarkets ripping consumers off.

    Overseas you can ship meat via post. MLA need to break the stranglehold of supermarkets and improve farmers negotiating power

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