June and July marked an “uncharacteristic” rise in Australia’s sheepmeat exports, with an almost 12 per cent increase to trade flows over the two months.
Australia usually experiences a seasonal lull in midwinter, but a new report by independent market analysis service Episode Three has shown strong offshore demand led to more than 52,000 tonnes shipped weight exported over July.
Episode Three market analyst Matt Dalgleish said the main export destinations were “relatively evenly distributed”, with China holding the top trade spot at 19.5 per cent of total sheep meat export flows from Australia in 2024 and the US second with 17.3 per cent of exports.
Other Asian destinations have 15.3 per cent of the Australia’s sheep meat export flow and the Middle East and North African regions have 14.6 per cent.
Australia’s sheepmeat export flow to China rose by almost 12 per cent in July and while it is below July 2023’s export volumes, it is the first time since February of this year that monthly sheep meat exports lifted above the seasonal average trend.
In July, Australian sheep meat exports to the US rose 35 per cent above the five-year seasonal average for the month.
For all other countries, the sheep meat trade has “remained strong”, with 34,703 tonnes exported in July.
This figure, which does not include China, marks a trade volume rise of 113 per cent over the five-year average for July.
A separate Episode Three report has also showed the gap in lamb prices between the northern and southern hemisphere had expanded “significantly” since mid-2021.
Australia experienced a lamb market collapse in late 2023, when Australian lamb become the cheapest out of the US, Europe, UK and New Zealand.
Australian lamb prices have since recovered and now sit above New Zealand’s.
However, Episode Three reported a “strong surge” in Europe, UK and US lamb prices and Australian lamb prices are now listed about 600-800 Australian cents below lamb prices in the northern hemisphere.