AUSTRALIAN lamb and mutton prices and export demand are expected to remain strong this year, according to Rural Bank and Rural Finance’s July 2016 Australian Sheep and Wool Update.
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The report reveals that a promising weather forecast for the next three months, a June Eastern States Trade Lamb Indicator increase of 9 per cent and an ever-increasing appetite for Australian lamb in the United States and the Middle East, represent a positive outlook for the Australian sheep sector.
The July 2016 report, launched by Rural Bank and Rural Finance’s specialist insights team Ag Answers, provides producers and industry with a concise analysis of the sheep and wool sectors.
With data on vegetation and rainfall, price, production and demand for sheep meat and wool, the report presents an analysis of key trends in global and domestic markets.
Rural Bank and Rural Finance head of sales Simon Dundon said that while conditions vary across the country, the Australian sheep industry was continuing to grow and develop and was now in a strong position to reap the rewards of a particularly strong export market.
“Favourable market conditions combined with a smaller than usual national flock has meant that farmers are now in a position to command well above average prices for their product,” he said.
“This is thanks mainly to a very stable domestic market and an ever increasing demand internationally for Australian lamb.”
According to the report, sheep and lamb prices have increased year-on- year across all states, apart from Tas, and are now well above the five-year average, thanks to a combination of strong export demand, declining flock size and anticipated flock rebuilding by farmers.
With year-to- date exports to the US and the Middle East also increasing by 30pc and 24pc respectively, and total live sheep exports now 36pc higher so far this year, it is a positive time for Australian sheep exporters.
The report confirmed that wool production declined in the 2015/16 season mostly due to fewer sheep shorn and lower fleece weights.
China remains Australia’s most lucrative market for wool, with 75pc of Australian wool exports bound for the Chinese mainland.
“While Qld and Tas based wool producers in particular continue to face a number of challenges, sheep producers across the nation can rightly feel very optimistic about the future of their industry,” Mr Dundon said.
- Details: www.ruralbank.com.au/sheepwool
