Australia's Export of Lamb and Sheep Meat Drops Significantly to $3.5 Billion in 2023

Australia Lamb and Sheep Meat Exports

In 2023, the amount of lamb and sheep meat exported from Australia reached 483K tons, growing by 2.4% on the previous year's figure. The total export volume increased at an average annual rate of +1.6% from 2013 to 2023; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed throughout the analyzed period. The pace of growth was the most pronounced in 2014 when exports increased by 11% against the previous year. Over the period under review, the exports reached the maximum at 495K tons in 2019; however, from 2020 to 2023, the exports failed to regain momentum.

In value terms, lamb and sheep meat exports dropped to $3.5B (IndexBox estimates) in 2023. Overall, total exports indicated a resilient increase from 2013 to 2023: its value increased at an average annual rate of +6.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, exports increased by +36.4% against 2020 indices. The pace of growth appeared the most rapid in 2017 when exports increased by 28% against the previous year. The exports peaked at $3.7B in 2022, and then shrank in the following year.

Exports by Country

China (64K tons), the United States (39K tons) and Malaysia (15K tons) were the main destinations of lamb and sheep meat exports from Australia, together comprising 24% of total exports. South Korea, Saudi Arabia, the United Arab Emirates and Japan lagged somewhat behind, together accounting for a further 7.3%.

From 2013 to 2023, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by South Korea (with a CAGR of +19.1%), while the other leaders experienced more modest paces of growth.

In value terms, China ($438M), the United States ($425M) and South Korea ($107M) appeared to be the largest markets for lamb and sheep meat exported from Australia worldwide, together comprising 28% of total exports.

South Korea, with a CAGR of +27.3%, recorded the highest rates of growth with regard to the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Exports by Type

Frozen sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) (262K tons) was the largest type of lamb and sheep meat exported from Australia, with a 54% share of total exports. Moreover, frozen sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) exceeded the volume of the second product type, frozen sheep (including lamb) boneless cuts (71K tons), fourfold. Fresh or chilled sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) (64K tons) ranked third in terms of total exports with a 13% share.

From 2013 to 2023, the average annual growth rate of the volume of frozen sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) exports amounted to +1.3%. With regard to the other exported products, the following average annual rates of growth were recorded: frozen sheep (including lamb) boneless cuts (+2.5% per year) and fresh or chilled sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) (+2.7% per year).

In value terms, frozen sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) ($1.6B) remains the largest type of lamb and sheep meat exported from Australia, comprising 45% of total exports. The second position in the ranking was taken by fresh or chilled sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) ($761M), with a 22% share of total exports. It was followed by frozen sheep (including lamb) boneless cuts, with a 17% share.

From 2013 to 2023, the average annual growth rate of the value of frozen sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) exports stood at +6.9%. With regard to the other exported products, the following average annual rates of growth were recorded: fresh or chilled sheep (including lamb) cuts with bone in (excluding carcasses and half-carcasses) (+7.1% per year) and frozen sheep (including lamb) boneless cuts (+7.8% per year).

Export Prices by Country

In 2023, the lamb and sheep meat price amounted to $7,162 per ton (FOB, Australia), dropping by -9.6% against the previous year. Overall, export price indicated a tangible increase from 2013 to 2023: its price increased at an average annual rate of +4.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, lamb and sheep meat export price increased by +63.1% against 2016 indices. The most prominent rate of growth was recorded in 2017 an increase of 21%. The export price peaked at $7,920 per ton in 2022, and then shrank in the following year.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the United States ($10,892 per ton), while the average price for exports to Papua New Guinea ($4,258 per ton) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was recorded for supplies to China (+7.6%), while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform