Aussie sheep meat exports continue to grow in value

THE value of Australia’s sheep meat exports has increased 24 per cent year-on-year, driven by the value of lamb exports increasing by more than 20 per cent when compared with 2016 figures, according to Rural Bank’s latest Australian Sheep Update.

Compiled by Rural Bank’s specialist insights team, the update reveals the value of sheep meat exports is trending higher in 2017 due to strong gains in export unit prices and a small increase in export volumes.

This was certainly the case with the Chinese market, where improved unit prices and a 31 per cent increase in volume has led to the value of Australian sheep meat exports tracking 61 per cent higher in 2017.

Elsewhere, the value of lamb exports to South Korea are more than double this time last year as lamb skewer outlets continued to grow in popularity in that country – while export value to the vital US market also grew eight per cent year-on-year.

General Manager Agribusiness for Rural Bank Andrew Smith said that livestock producers across most parts of Australia had experienced a difficult few months due to the driest winter since 2002, but the outlook for the rest of the year was more positive.

“With average to above average rainfall forecast for the rest of the year, things are looking good for producers,” Mr Smith said.

“Domestically, we saw high lamb prices until June this year but dry conditions since then have seen many farmers turn-off stock.

“Lamb production from May to August 2017 was 10 per cent higher than the same period in 2016 which resulted in volatile pricing from July through to September.

“Encouragingly though, prices have since steadied, with average prices trending just 1.7 per cent below what was earned by producers in the July to September 2016 period.”