LAMB slaughter has surprisingly kept pace with last year's record supply and as a result has forced Meat and Livestock Australia (MLA) to revise it's forecast to match the 2014 record.
That means MLA market information manager Ben Thomas has tipped lamb slaughter to hit 22.25 million head by the end of the year.
Mr Thomas said he had revised the estimate for the July update of the Australian Sheep Industry Projections as there had been larger than anticipated supplies of lambs still entering the market.
"This indicates lamb marking rates have improved considerably in recent years," Mr Thomas said.
At the same time, he said a decline in the season was imminent during the coming months and lamb offerings were anticipated to increase.
He said the MLA and Australian Wool Innovation (AWI) wool and sheepmeat survey indicated the total number of lambs on hand at the end of the financial year lifted two per cent year-on-year to 25 million head.
This was on the back of a steady breeding ewe flock of 40.9 million head, while total number of sheep and lambs was estimated at 69.8 million.
Mr Thomas said the total number of sheep and lambs was down about 2.6pc on year-ago levels.
Lamb prices have also averaged much higher when compared to 2014 right across the board.
After six months, the national light lamb indicator (12 to 18 kilograms) averaged 527 cents a kilogram, up 10pc; the restocker indicator (up to 18kg) was up 9pc at 531c/kg, while heavy lambs were only 1c/kg higher than the same period last year, averaging 554c/kg," he said.
But, Mr Thomas cautioned that during the past five years the lamb indicators had tended to average 6pc to 8pc lower in the second half of the year when compared to the first.
"Considering a large number of lambs are expected to hit the market, combined with a drier than average rainfall outlook, this trend seems likely to be repeated this year - albeit coming from a relatively high base," he said.
This suggests that although prices may slip in the second half of this year they should still track at the very least on par with last year, but could still be higher than 2014 rates.
Exports continue to take a big chunk of the overall lamb production.
"After the first six months of 2015, Australian lamb exports were up 4pc on last year's record, at 117,994 tonnes (shipped weight)," Mr Thomas said .
"Highlighting the progressive growth of the Australian lamb industry, the volume for the year-to-date is 31pc above the five-year average and 42pc above the 10-year average."