Butchers warn meat prices to go up this winter

News.com.au

6 days ago

Making those warming winter comfort meals may be even harder this year, as cost-of-living continues to bite small businesses and Australians alike.
General manager of Cannings Butchers Matt Oltoumis said it's likely meat prices will rise this year, with a number of factors are contributing to the rising cost.
'We're likely to see beef and lamb prices rise in 2025, mainly due to tighter supply, strong export demand and some processing bottlenecks,' he said.
'Pork and chicken should stay more stable.'
Mr Oltoumis said this is due to a variety of reasons, which are constraining cost-effective supply.
'The cost of meat at your local butcher is driven by a combination of factors, everything from farm prices and export demand to rent, power bills, logistics, and wages,' he said.
'Fuel and inflation hit hard too for business owners.
'It's a complex supply chain, and as a retailer we wear a lot of that pressure while still trying to offer fair prices and keep creative with value-adding products that aren't in on our customers' usual menu.'
Labor costs are hurting local butchers – but the quality delivered by skilled human input is also what keeps customers coming back despite economic conditions.
'The most expensive part of producing meat is labour. We need skilled farmhands and processors to ensure the quality of the meat we sell to our customers, as well as experienced butchers and retail staff,' Mr Oltoumis said.
'This expert human input is vital and obviously comes at a cost. Add to that the rising costs of compliance, logistics, and maintaining cold chains, and labour consistently tops the list.'
However, the investment is paying off, as overall spending at butchers has grown 6 per cent, despite the average basket size dropping 41 per cent – $80 from April 2024 to $47 in April 2025, Tyro payment data shows.
This comes as food prices rose 3.2 per cent over the 12 months to the March quarter, up from 3.0 per cent in the December quarter, ABS statistics show.
Meat and seafood prices rose 4.3 per cent compared to 12 months ago, the largest annual increase since the December 2022 quarter.
Mr Oltoumis revealed the most underrated cuts of meat for budget-conscious shoppers.
'Pork neck is hugely underrated. It's affordable, well-marbled and incredibly versatile. Perfect for slow roasts in winter, but also brilliant when minced for a rich, traditional bolognese or cut into chunks and grilled as skewers. It delivers tenderness, flavour, and value across a range of cooking styles,' he said.
'Chicken thighs, beef mince, pork shoulder (neck/scotch), and chuck roast are my go-to economical cuts.
'They're flavourful, versatile, and stretch across multiple meals – perfect for bolognese, curries, roasts or slow cooks. You get great value without compromising on quality, especially when it's all premium, free range produce.
'As the seasons change its entirely natural for us to crave 'winter comfort meals' and people start to cook a little different, they tend to want to make a meal that will feed them for a few days like a ragu for lasagne or slow cooked roast that you can use for a bunch of different other meals afterwards.
'People swing towards products that can be cooked slowly and
open them up to a variety of recipes.'
Tyro chief executive Jon Davey said small businesses like local butchers are showing great resilience despite economic pressures, as community and quality keeps them above water.
'Local Australian food retailers remain important for local economies,' he said.
'Small independent retailers continue to attract business through trust and personal connections, with nearly 68 per cent of customers visiting weekly.'