Lambs cheaper, export outlook positive

A record volume of lamb was exported in 2023, but what is in store for the year ahead?

After lamb prices rocketed upwards in the first trading week of the year, they have come back slightly this week.

According to the National Livestock Reporting Service at Bendigo’s prime lamb sale on Monday prices fell $10 to $20, while at the Corowa, NSW, market they dropped $20 to $30. Data from the NLRS shows most lambs were back below 750c/kg carcass weight on Monday. The national trade lamb indicator was sitting at 756c/kg on Monday, back from its high of 780c/kg at the start of last week.

Episode3 director and analyst Matt Dalgleish said lamb prices have had a big recovery since the Christmas break.

And while prices were slightly cheaper this week, it was looking like a more reasonable year for prices and positive export prospects for lamb.

“For sheep meat the UK is increasing its volumes and the US has recovered in terms of demand too,” Mr Dalgleish said.

It comes off the back of a huge 2023 for export volumes, with the Department of Agriculture, Fisheries and Forestry export data showing a new annual record volume of lamb was exported in 2023.

In total 326,013 tonnes of Australian lamb was exported in 2023, almost 15 per cent higher than the previous record year of 2022 when 284,256 tonnes of lambs was shipped. China was the top trade destination for Australian lamb with 67,763 tonnes, or 20.8 per cent, while the US took 20.3 per cent, or 66,320 tonnes of the trade.

Meanwhile, there was 1,082,405 tonnes of Aussie beef exported during 2023 which is the best annual volume since 2019.