SHEEP numbers continue to drop in the United States, Australia’s largest export market for lamb, according to Rabobank’s September Agribusiness Review.
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The review said the US flock had dropped for the fifth year in a row to just under 7 million head. This was expected to result in increased demand for Australian and New Zealand imports in 2011.
Rabobank said sheep meat prices in China reached record levels in late July of 38.3 Yuan/kg. China is the largest producer of sheep meat in the world, but has also become Australia’s second largest export market for lamb. China and Hong Kong have taken 14 per cent (12.705 tonnes) of Australia’s lamb exports this year.
Rabobank said lamb prices surged in Australia and New Zealand in August. However, in New Zealand lamb slaughter numbers were about 20 per cent lower on a weekly basis and July export volumes were down 25 per cent (7000 tonnes) on the last year.
Rabobank said New Zealand’s July export volumes to China though lower in absolute terms, increased by 12.2 per cent of total exports by volume compared with 10.3 per cent in 2009. For the seven months to July 2010 China accounted for 7.7 per cent of total sheep meat exports.
Rabobank said the Euorpean Union market remained the key destination for more than half of New Zealand’s sheep meat exports. Though local European lamb prices have moved significantly higher and earlier in the season, the bank’s review said the firm market continued to bode well for prices in the coming season.
EU lamb prices are nine per cent higher than this time last year and British prices were 20 per cent higher in euro terms.
