Buyers have seen prices of around $9-$10 per kilo for lamb in the past few weeks after steadily becoming more expensive since May.

Gunnedah stock agent Guy Gallen told the NVI the "unprecedented" prices were due to high export demand.

"There's a lot of export demand for our product and the export demand has driven the domestic price up," Mr Gallen said.

"It's been setting a new record every week from about May, June and July."

READ ALSO:

Mr Gallen said he thought the price would start to decrease soon.

"I think we are at the top of the market, I don't expect them to get any dearer. I expect them to stay strong but not as strong as they are," he said.

"I think the market will start to come off the boil."

While shoppers might not be enjoying the high prices, producers are living it up. But Mr Gallen said producers know they won't stick around.

"In a nut shell, the producer will take the highs and the lows, they prefer the highs but they know when [prices] get to $9 to $10 kilo, they will not last," he said.

The stock agent said majority of the sheep would be going off to slaughter, rather than to other farms in the north west region.

"In northern NSW because of the drought conditions there has been no restocking going on, most of the stock that have been sold are either going to slaughter or further afield for a different paddock," Mr Gallen said.

Subscribe to keep up-to-date with all of Gunnedah's latest news.