Optimism for 2012 among Australian sheep producers
22/02/2012
Chief MLA economist, Tim McRae, said in a statement that consecutive good seasons in the eastern states and drought breaking rain in WA will see the Australian sheep flock continue its early steps toward rejuvenation in 2012.
“Lamb supplies will increase in 2012; therefore prices are expected to be lower than the record levels reached in 2011. However continued strong demand, particularly from export markets, should see good producer returns continue,” he said. “High feed availability in 2012 will have many producers weighing up the opportunity to turn lambs off at heavier weights.”
He said demand for Australian lamb had been particularly high in 2011 in the Middle East and Greater China, although the US remains a very important market for Australian lamb too. He pointed out that lamb exports now generate a much higher proportion of income for sheep farmers than in previous years, with a record 48.5% of total lamb production sent overseas in 2011. The Middle East was the largest export market with 34,893, a share of 22%, followed by the US with 21%, and the growing market in Greater China now with an 18% share. These markets are expected to continue to grow, with the US starting to recover in 2012, the statement said.
Mr McRae concluded that the main challenge for Australian producers of sheep meat is to supply enough to meet current levels of demand. He said: “Fortunately for the industry conditions remain conducive to an ongoing flock rebuild.”
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