Lamb is now in the firing line of the supermarket discounting war with the experts wondering how low the prices will go.

Supermarkets, butchers and even fast food outlets are serving up a heavy helping of lamb cuts along with price cuts.

For years Sam Kekovich tried to push lamb onto our plates but the high price relegated the tender meat to a rare treat.

More stories from Today Tonight

• The best meat pies
• Finding the best jeans
• Healthy packaged foods

The lamb industry is worth $3 billion dollars but in the last decade consumption of lamb in Australia has plunged 25 per cent.

But now the price of lamb has got the chop.

Woolworths wants to put lamb back on our dinner table, slashing some cuts of lamb, like chops, to their the lowest price since 2005.

"The price campaign's been fantastic with lamb since we've reduced our everyday shelf price between 20 and 30 per cent. In fact the lamb legs sales are up on last year nearly 82 per cent which is nearly double on last year," Andrew Goudie from Woolworths said.

For the next three days a leg of lamb is selling for just $7.99.

"The reaction from farmers has been fantastic, it's driving up demand for them so they're increasing their flock numbers to cope wtih that additional demand from Woolworths."

Good weather conditions and plenty of feed have seen sheep stocks increase.

According to the Sheep Meat Council prices at the farm gate have dropped.

"From a producer level, we've gone from 650 cents a kilogram in March last year to around 400 cents a kilogram today. To some extent the price reduction that we're seeing now in Woolworths is a reflection of that price reduction," Sheep Meat Council Chief Executive Ron Cullen said.

"Farmers have been concerned about the power that Woolworths and Coles have in the marketplace and that's a legitimate concern. We've talked to Woolworths and we've said, 'Look, these are some of the issues aroun discounting of our product', and we'll keep those lines of communication open."

At some supermarkets lamb roasts have dropped 20 per cent. IGA has the cheapest lamb on special at $6.99 a kilogram, followed by Woolies and Coles.

Butchers Today Tonight visited varied from $8.90 to $12.99 a kilogram, but in those instances customers are not paying for the bone.

Lamb prices

IGA $6.99/kg
Woolworths $7.99/kg

Coles $8.99/kg

NSW - RG Wholesale meats (boneless) - $8.90 kg
VIC - Old Style Butchers $12.99

QLD - Super Butcher (boneless) $8.99/kg