Lamb exports still on the up

April lamb exports hit 31,318 tonnes, a 2 per cent gain on March's volumes.

The rise made the month the third highest flows of lamb exports from Australia on record, 41pc higher than April 2023 and 35pc above the April five-year seasonal average.

In top destination USA, there was an 8pc decline in flows off a high base, to see 6762 tonnes shipped, 76pc above last April and 30pc above the five-year average.

China saw a 16pc boost in volumes during April with 5245 tonnes shipped, 4pc below the five year average and 2pc above last April's levels.

Australian lamb exports to other destinations outside the top two hit a new record volume, with 19, 311 shipped for the best month ever, beating the record set in October 2023.

Episode 3 market analyst Matt Dalgleish said in the lamb space, shipments to other destinations account for about 60pc in the exports.

"You've got countries too like the UK where we have the ability for the quotas to increase over the next decade, there's whole markets there that have got really good growth opportunities with consumers that are reasonably high per capita income, so they have the capacity to consume an even more premium product if we choose to go down that pathway," he said.

"At the moment part of the reason we are so popular with the volumes is because we're so cheap with our actual carcase compared to other countries, which is a two-edged sword for the producer.

"Whereas if we can develop a market a bit more like the beef market that's got that different segmentation, where you have commodity beef... but then you've also got on the other side the really top cuts and the Wagyu markets or the grainfed stuff going into northern parts of Asia and into the US that get a premium value in terms of price... then that's a great outcome for the supply chain.

"That's where the sheepmeat side really has to focus.

"The US market is our biggest market for lamb exports but lamb consumption in America accounts for about 1pc of their meat consumption.

"If we could increase US consumption of lamb to about 3pc or 4pc, that's effectively a 400pc growth in the volumes.

"The US again is another market that has high income and if you look at spending in restaurants per capita per year, the US leads the world in how much they go out and spend at a restaurant... you can see huge amounts of opportunity for that premium end."

Mutton exports for April dipped by almost 7pc from March's volumes but at 18,913 swt they were still the best April volumes on the record, beating out last April's peak by 20pc.

The April 2024 mutton export volumes were 54pc above the five-year average for the month.

While demand from the top two destinations, China and Malaysia eased, there was growth from other export markets to underpin the strong levels.

Mutton flows to China dropped by 20pc during April, with 4812 swt shipped, 36pc below last April and 5pc down on the five year seasonal average.

Malaysian volumes dropped more drastically from March to April, declining by nearly 36pc to 1870 swt but the record April flows remain above the five-year April average by nearly 44pc.

Mr Dalgleish said that Malaysia had seen a big surge in demand in the last few years to take the second top spot.

"There was this big lift but it's settling back a bit but it's still above average and representative of strong flows and China has just been steady as she goes," he said.

"They do get a bit of peak going through Lunar New Year so they do have increased flows, so sometimes it can be a bit of reaction back from that.

"In the month of April we have Anzac Day and Easter is sometimes in April too...sometimes we can have two weeks in April that we have reduced slaughtering and reduced volumes available so it can be a bit of natural ebb."

Flows to other destinations made up 12,231 tonnes swt in April, largest monthly exports of mutton from Australia since December 2014 and nearly an 8pc lift on the March 2024 figures.

Compared to April 2023 current flows to other destinations are 76pc higher, reflective how much the current competitive pricing has driven international mutton demand.