Australian lamb exports to the US on upward trend

Sales and development for importing outfit Southern Rocklobster USA, Henry Tucker, Denver, Colorado, said the company started importing Myrtle Vale Prime Lamb, produced through a new program with Junee abattoir, in mid March.

"It is early days for us because our focus has been Wagyu beef from Queensland ... but the lamb was built in as our secondary core item," he said.

"It has been received well in what is traditionally a beef eating country."

Mr Tucker said they had started out shipping fresh rather than frozen.

"We are definitely building towards that container business but for now we're just using (company) AV Shipments to get the product into the market and get it in the hands of butchers and chefs and the like," he said.

Mr Tucker said they had access to the full carcase but French cap of racks were the main product and were also importing boneless shoulders and boneless legs.

"Racks are definitely a cut that's the most popular out here in the US. The other ones are more of an education piece at the moment in terms of what the market is familiar with," he said.

Mr Tucker said the lamb was imported into Long Beach, Los Angeles, with the majority of lamb distributed in southern California to retail and wholesale markets, and a small amount flown into Colorado, and the plan to service more areas.

Originally from Wagga Wagga and grandson of Harry Francis, founder of local stock agency H Francis and Co, Mr Tucker said he was proud of the brand.

"The feedback generally is the quality is very good, which of course, we know as Australians we produce great lamb but the market out here, the feedback has been excellent," he said.

"We're very happy with it and proud to carry it out here particularly myself."

Overall, opportunities for Australian lamb in the US is increasing, with domestic consumption on the rise.

Meat and Livestock Australia's North America regional manager Doug McNicholl said exports to the US had been trending up, with the US the largest market for Australian lamb in 2024.

Export volumes YTD to May were 35,844 tonnes, up 51 per cent from the same period in 2023.

He said Australia supplied about 50 per cent of the lamb consumed in the US, stemming from Middle Eastern, Greek and Hispanic ethnicity demand, with consumption peaking during Easter and Christmas periods.

He said Caucasian consumers were increasingly willing to try lamb, particularly the millennial generation spurred by the desire to experiment to break the mundane routine and lack of availability of red meat during and on the way out of the COVID-19 pandemic.

"While supermarkets are the main purchase channel for Australian lamb, sales are increasing with online retailers and club store warehouses such as Costco," he said.

Mr McNicholl said the growing popularity of casual ethnic cuisines, particularly Middle Eastern, Mediterranean, and North African, was likely to be a key driver of lamb usage over the next few years.

He said the most popular lamb cuts were leg and loin, accounting for just more than 45 per cent of the volume share, while racks had been increasing in popularity and account for about 15pc of the volume share and almost 30pc value share.

"Lean ground lamb is also growing in sales thanks to more familiar and approachable applications such as burgers and flatbreads," he said.

On the US domestic front Mr Tucker said lamb prices were currently very dear but still cheaper than the USDA Choice Beef price, so competitive price wise.

Mr Tucker said carcase weights in the US were currently lighter, so any lighter lamb carcases from Australia were not worrying US buyers.

With drier conditions in parts of Australia and farmers turning lambs off pasture and onto grain, Mr Tucker said this was suiting the US palate.

He'd had feedback, particularly on NZ lamb, that American consumers see it as more of a gamy flavour.

"Despite the tough period farmers are going through in certain areas the grain finishing is actually probably leading the palate here more," he said.

He said despite the fact US domestic lamb supply was up and domestic prices high, demand was still good, so a positive sign for Australian lamb.

"Imports are up 33pc year on year at the moment so the market is definitely taking on a premium quality and a price competitive Australian product and I think there's a good opportunity for more volume to come out."