By Evie Liu

Americans are paying more for their lamb chops as a shortage pushes prices higher.

The national average lamb-carcass value reached $501 per 100 pounds in late November, roughly 16% higher than a year ago, according to the American Sheep Industry Association. Prices of U.S.-raised lambs sold to slaughterhouses were up more than 30% year over year. Imported lamb cuts have climbed as well; prices for certain Australian products are running more than 20% higher than last year.

On social media, shoppers are reporting that lamb has become noticeably harder to find. One Reddit user wrote that "shelves are completely empty" in their local Costco store. On Facebook, others noted that Kirkland-branded lamb hadn't been available "for a couple of weeks." Costco's website indicates that retail customers can still purchase lamb online, but only in amounts around 10 pounds.

Domestic supplies of lamb have been shrinking for years: The national sheep flock is near a historic low as ranchers grapple with high costs. Dry conditions in critical western states have reduced grazing capacity.

Imports, which have been filling the gap for decades, have fallen this year as well. More than 70% of all lamb consumed in America is imported, mostly from Australia and New Zealand, according to the Department of Agriculture's Economic Research Service.

From the start of the year through July, imports of lamb and mutton totaled about 175 million pounds, down 4.5% from the same period a year prior. In the spring, weekly data showed even steeper year-over-year declines.

This might not sound like much in isolation, but when imports make up most of the country's supply, even a small decline tightens the market quickly. That has pushed prices up for everyone from wholesalers to home cooks.

A mix of factors is responsible. Global demand for lamb has risen, especially in the Middle East and parts of Asia. That means countries such as Australia and New Zealand, the U.S.'s two biggest suppliers, have more buyers competing for the same animals.

At the same time, dry weather in lamb-producing areas abroad has trimmed flock sizes and reduced carcass weights, limiting the supply of meat for export.

Then there is trade policy. The Trump administration's tariffs on farm products, including lamb, have slowed buying and delayed shipments.

While there seems to be a broad shift in policy -- the White House announced a rollback of tariffs on a range of agricultural goods, including beef, this month -- lamb wasn't on the list. Similar tariff relief wouldn't be welcomed by the American sheep industry.

Producers have long argued that heavy reliance on imported lamb has undermined domestic output. Industry groups have petitioned the federal government to tighten import controls to help local ranchers compete.

"We have farmers, second- and third-generation farmers, that are at risk of losing their ranches," Julie Callahan, the assistant U.S. Trade Representative for agricultural affairs and commodity policy, told the Senate Finance Committee in October. "They're being outcompeted by imports."

Write to Evie Liu at evie.liu@barrons.com

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November 27, 2025 02:30 ET (07:30 GMT)

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