VICTORIAN lamb prices are forecast to remain elevated over the next six months and well above five-year average levels, according to Bendigo Bank’s 2025 Mid-Year Australian Agriculture Outlook released last week.
However, it says further upside will be limited by processor appetite and their ability to pass on increased costs to consumers. 
Production in Victoria is expected to be significantly lower following destocking, while dry conditions at joining and reduced feed availability at lambing is expected to impact weaning rates. Consumer demand is likely to be supported by easing cost-of-living pressures and tighter protein supply with reduced lamb output from New Zealand and beef output from the US. 
The prolonged period of destocking at the national level will continue to support mutton prices as well
The report says: “The wool market is hoping to find price support at the current levels despite a stronger Australian dollar, primarily due to reduced supply. The second half of 2025 is forecast to have lower supply of wool as many producers continue destocking or taking advantage of higher lamb prices.
“Demand has remained flat for the current season, however, there is some hope it may pick up as the economy in key market China improves.”