Tight Supply Lifts Lamb Prices Above Seasonal Expectations

Lamb prices have seen a surprising surge driven by a tight supply and increasing demand in non-traditional markets.

COLLEGE STATION, Texas (RFD-TV)—Across the United States, lamb markets are showing an unusual pattern this season. Prices are rising this time of year when the market typically softens, giving producers a rare boost. The Texas A&M AgriLife Extension Service reports significant movement in both cash and wholesale markets.

“We’ve got prices going up when normally they’re going down this time of year, seasonally — so, we got a real, pretty strong kind of counter-seasonal market rally happening — and we’ve got higher prices in the wholesale cutout value market as well,” explained David Anderson with Texas A&M. “So, there’s really some good movement in terms of prices in the right direction, and interestingly enough, we’ve got a little more production going on, too. So, you put the thing together, and it looks like a pretty good picture for the movement of products and prices.”

Even as the traditional lamb market faces challenges from imports, producers are finding opportunities in new, non-traditional areas, even creative approaches, such as grazing under solar panels.

“We have an industry that, in some respects, is struggling, but in some respects is growing; we have a traditional market that’s really been impacted by imports, and we have a growing non-traditional market,” Anderson explained. “You know, grazing solar panels and everything else have provided some more opportunities. I think it’s difficult to find new alternatives that work sometimes — because oftentimes, what we’re doing is what’s best suited for an AA— and so, trying to make something else work. But I think a lot of people are looking for new alternatives, and they need to check [solar panel grazing] out as well.”

Livestock Production Trends: Lamb Tells a Different Story

Rising productivity is reshaping beef and pork markets, allowing steady output with fewer breeding animals. Lamb production, however, illustrates how consumer demand and breed shifts can reduce per-animal output, creating different pressures within the industry.

Lamb production has dropped from 57 pounds in 2000 to 48 pounds in 2024, reflecting growing consumer demand for smaller carcasses and the rise of hair sheep breeds.

Related Stories
The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.
Having a good read on fuel prices is a must during harvest, but one analyst says grain farmers should also be watching the crude oil markets.
The new antitrust agreement between the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) aims to enforce antitrust laws and monitor market activity across the ag sector.
Support policies that keep U.S. biofuels at the table—marine demand could materially lift corn grind, crush margins, and rural jobs.
China is not one of our top suppliers of cooking oil, according to USDA ERS data, but does export a lot of used cooking oil to the U.S. for biofuel production.
Industry leaders say $11 billion in new investments could turn the tide as dairy producers face shrinking margins and growing uncertainty.
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.
President Trump is expected to press Argentina to take a tougher stance on China in exchange for political and economic support.