1. Cost of production: Lamb production involves various expenses such as feed, veterinary care, housing, and labor. The cost of these inputs has been rising due to factors like increasing feed prices and higher labor costs.
2. Demand and supply: The demand for lamb meat has been growing, particularly in emerging markets. This increased demand, coupled with a relatively inelastic supply, can drive up prices. Lamb is a seasonal product, and the supply is often limited during certain times of the year, leading to price fluctuations.
3. Market competition: The lamb industry faces competition from other meat sources, including beef, pork, and poultry. If these alternative meats are more competitively priced, consumers may shift their preferences, reducing demand for lamb and potentially affecting its price.
4. Transportation costs: Lamb meat often needs to be transported over long distances from farms to processing facilities and then to retail stores. Transportation costs can add to the overall cost of the product and impact its final price.
5. Seasonality: The price of lamb can vary depending on the season. Lamb is typically more expensive during holidays and peak demand periods.
It's worth noting that the specific prices for lamb can vary depending on the region, local market conditions, and other factors, making it difficult to provide an exact explanation for its high price.