Wiggly Tail Pork Shop and Butchery manager James Ryan says 2018 is the toughest year he has experienced in the industry.
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Mr Ryan has been a butcher for the last 38 years and has worked at the Laurieton business for the last two years.
He said butchers are feeling the pinch due to the drought impacting farm communities in NSW.
Researchers from the University of Melbourne recently found the country is experiencing the worst conditions in almost 400 years, with 99 per cent of NSW currently in drought.
“Meat prices have gone up already,” Mr Ryan said.
Lamb is the meat which has been most impacted.
“The wholesale price of lamb has gone up by about 25 per cent,” Mr Ryan said.
“Beef has gone up by about 10 per cent.”
Mr Ryan said the price of pork has stayed the same, but he said it’s likely it will increase in the future.
He said this is because the price of grain will rise due to increased demand from farmers.
Mr Ryan said he sources his lamb from Cowra and Tamworth.
He said it’s not just the farmers who are impacted by the drought, but local businesses and customers too.
Graeme Martin from Top End Fruit and Vegetables sources majority of his product from Queensland and said the drought hasn’t impacted his business.
“Most prices have stayed the same,” he said.
However Graeme said the price of cucumbers, zucchini and capsicum have increased.
Ken Little, from Ken Little's Fruit and Veg in Port Macquarie said the impact of the drought is likely to be seen into 2019.
"It hasn't had an affect at the moment. But, we feel as though it will next year," he said.
"What could happen is we could have a shortage of certain things, like apples for example, because they're grown in Orange and they haven't had much rain.”
T-Bones Premium Meats was contacted for comment.