As retail prices for red meat resist the broader trend of inflation at the supermarket checkout, more consumers are adding lamb and beef to their shopping carts. This shift in consumer behaviour will likely have only a minimal ripple effect on real estate values.
According to Meat & Livestock Australia (MLA)[i], which provides free and transparent market information and analysis service to the red meat industry, the sales volume and overall value of lamb and beef in the domestic market remains solid. When comparing the 12 weeks to 13 August 2023 with the same period last year, value growth for beef is 1.8% and for lamb is 4.2%.
Data from NielsenIQ HomeScan shows a 7.3% reduction in the price consumers pay for lamb compared to a year ago, supporting a 12.4% increase in the volume of lamb purchased at the cash register.
According to Nathan Low, General Manager of Marketing and Insights at MLA, lamb has seen a boom in purchases in recent months as consumers notice its falling price and jump on the opportunity to purchase a high-quality and nutritious protein.
“The price reduction is translating to increased purchasing frequency for several cuts,” Mr Low said.
“This is especially the case for the most popular cuts like lamb legs and chops, which are up 20% compared to one year ago.”
“Consumers see these price reductions and purchase more as a result. As this happens, retailers are looking to bring in customers with competitive pricing through catalogue promotions, and increased stock on the shelf,” Mr Low said.
For beef, NielsenIQ is reporting a 7.1% growth in volume in the last quarter, compared to the previous year’s period, with an average retail price decrease of 4.9%. Frequency of purchase and volume per purchase are up in the latest quarter.
“Consumer perception of beef and lamb is strong,” Mr Low said. “Tracking by Kantar, commissioned by MLA on behalf of the industry, said that consumers see both beef and lamb as increasingly worth paying more for due to their high quality and taste.”
Relationship between rural real estate and retail meat prices
Travis Wentriro, Rural Network Manager at Raine & Horne Group, expressed that despite decreasing supermarket prices, robust demand for premium properties will persist in regions with ample rainfall.
“We also expect that farms offering opportunities to diversify across various commodity types will continue to attract buyer eyeballs.”
If you’re considering listing a rural property, contact your local Raine & Horne Rural estate agent today.