Australian sheepmeat exports have steamed past their previous financial year record, with our two major markets upping the ante, and both Middle East and South-East Asia customers increasing demand. Lamb exports reached a new high in May, and record domestic heavy lamb prices are highlighting the strong global demand, as slaughter has also been tracking in record territory.
For the financial year ending June 2025, Australia exported just shy of 620,000 tonnes of sheepmeat, an increase of 5% on the 2023-24 year when the previous record was set. Mutton was the major mover, increasing by 16% and making up for lamb actually dipping by 1%. China remained our biggest combined market by far — 60,000 tonnes ahead of the next largest — and took an extra 7% of product year-on-year.
Lamb exports hit a monthly record in May before dipping slightly in June, but were still at the highest volume ever for that particular month and stayed above year-ago levels. Volumes for the year-to-date are tracking at 2% above the same time in 2024, despite financial year figures falling by 1%. The US has maintained its majority market share with 22% this year, and for FY2024-25 US imports increased by 5%. However, we may be starting to see the impact of the 10% tariff implemented in April, as lamb volumes to the US have been lower year-on-year each month since March.
China, on the other hand, has been increasing its intake of Australian lamb every month since March, importing 55% more in June than the previous year. This comes on the back of new or expanded access for 17 Australian processors into China from April, and, of course, tit-for-tat trade tariffs between China and the US leaving China looking for protein elsewhere. Lamb exports to China fell by 9% for FY2024-25 but are up 19% for this calendar year-to-date.
Not to be overlooked, Australia’s free trade agreement with the United Kingdom has meant lamb exports there have lifted 43% in the past 12 months, while Saudi Arabia rose by 25% and Malaysia by 13%. Which brings us to mutton, where exports rose 16% for FY2024-25, driven by an 18% increase to China, which imported nearly 100,000 tonnes of the 256,000-tonne total. A 19% increase in mutton to Malaysia for that period has cemented it as Australia’s third-largest sheepmeat market, with exports there tracking at record levels for the year-to-date.
While the trade dispute between China and the US may be benefiting Australia’s sheepmeat market, other international factors could be starting to have the opposite effect. Year-to-date lamb exports to the Middle East, which is currently plagued by conflict, have fallen 22%, while their mutton intake is down 8%.
What does it mean?
Export weight lamb supply is unlikely to significantly increase in the short term, which, with current demand, will continue to support domestic producer returns at around current levels. With limited overseas competitors when it comes to sheepmeat production, reduced supply doesn’t necessarily mean markets will look elsewhere, and the current value of the Australian dollar should help global customers absorb the price rise.
Key Points
- Lamb exports are still tracking above year-ago levels for the year-to-date, despite dipping lower in June.
- Malaysia was mad for Aussie mutton in June, lifting to be the second biggest market.
- Total sheepmeat exports break the financial year record for 2024-25.
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Data sources: MLA, DAFF, IMF, Mecardo
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