IT was another record year for Australian sheepmeat exports in 2019 on the back of strong global demand constrained supplies according to Meat and Livestock Australia (MLA) and it is looking much the same for 2020.
MLA's Australian sheep industry projections February 2020 report said global markets continue to reflect strong demand and constrained supplies from Australia and New Zealand, the two dominant sheep exporters.
The national sheep flock is projected to fall 3.5 per cent to 63.7 million head, the lowest level in more than a century, as a result of droughts in the Eastern States, which forced producers to offload their breeding stock.
In 2019 Australia exported a record 282,000 tonnes shipped weight (swt) of lamb in 2019, up 5pc year-on-year and 184,000t swt, up 2pc.
China has been a very strong market for Australian sheepmeat over the past four years, spurred on initially by a growing affluent consumer class discovering a taste for quality sheepmeat, and more recently by the huge meat gap left in the wake of African swine fever (ASF).
Boosted by ASF and a swelling affluent consumer class, MLA reported demand from China in 2019 applied competitive buying pressure, drawing product away from other markets and as a result Australian sheepmeat exports to China surged 42pc in 2019 to an unprecedented 152,700t SWT.
MLA said increased lamb prices in Australia have largely coincided with the emergence of China as a major buyer of Australian and New Zealand sheepmeat.
It said Australia's export growth to China had comprised mostly of lower-value cuts, but recently there has also been increased shipments of higher value lamb products.
MLA said exports of breast and flap - destined for popular restaurants scattered across the country - comprised about a third of the trade in 2019.
In terms of mutton, carcase exports to China have increased from 4pc of all mutton shipments in 2016 to 24pc last year, pulling product away from some lower-tier channels in the Middle East.
Lamb leg exports to China increased ten-fold in 2019 to 8100t swt, providing competition to traditional US buyers.
MLA said the staggering growth in Chinese imports in 2019 further cemented its position as the world's largest sheepmeat market.
