The domestic meat price is largely controlled by export prices . Many do not realise that both Coles & Woolworths are huge exporters of meat. Coles has had export sales in excess of Half a billion $ a year .Most abattoirs are export these days with only a few small works domestic only. So when Stock are processed the product is sent to whatever market shows the best return. Put a lid on domestic price and it will go on a boat , simple.Most supermarket buyers have forward contracts for lamb in particular and in the past that has kept domestic prices on an even keel , however with the recent slump in livestock values they have been stuck with these forward contract prices , that is coming to an end and we will soon see in store lamb prices ease .Cattle supply for supermarkets is mostly feedlot sourced and these are also subject to similar contract restraints . Hope this provides some clarity.
