It’s no secret that export demand for lamb has been the driver of the record pricing of the last six months. Globally, red meat is in short supply, and lamb is part of that complex. This article looks at exports in 2025, and how we’ve opened 2026.
Despite the extremely tight lamb supply through the second half of 2025, Australian lamb exports recorded their second-largest year on record. Figure 1 shows Australia exported 343,758 tonnes of lamb. Export volumes in 2025 were just 4% lower than the record levels of 2024, with some major shifts in destinations.
Just as the heavy volumes and cheaper lamb values of late 2023 and early 2024 saw more lamb flow into the Middle East, tightening supplies and higher prices saw the Middle East take 32% less lamb. Exports to the US were largely steady, with it remaining our largest market. China exports were up 18.5%, but still below the records set in 2023.
Exports to the EU were up 51%, and the UK up 33%. The EU and UK were historically filled with lamb from New Zealand, but declining flocks have seen NZ exports on the wane. NZ remains the second-largest lamb export country, but they are not well placed to fill increasing demand.
January lamb exports were lower than December, as is the seasonal trend. Market share remained similar to how 2025 played out, with the US the largest market, taking 25% of Aussie lamb exports (Figure 2).
The Steiner Group provides Meat and Livestock Australia (MLA) with intermittent updates on the US lamb market (see more here), which explain the declining domestic lamb stocks and rising prices. Although not back to the highs of 2021, when converted to an Australian dollar equivalent, US lambs are making roughly 1,700¢/kg cwt.
High domestic lamb prices in the US have flowed through to the prices importers are paying for Australian lamb. Figure 3 shows two of the largest volume cuts exported to the US. Export lamb prices have rallied strongly, with Frozen Leg finishing 2025 40% above 2024, and Chilled Shortloin 18% higher.
The price rally for the Frozen Leg equates to around $5/kg in our terms, taking the price to $18.80/kg. If we work on 3kg legs of lamb, the value derived from two legs is $112 per lamb, $15 more than this time last year.
What does it mean?
Export markets remain the key driver of strong lamb prices. The recent rise in the Aussie dollar may dampen prices slightly, but they remain well above last year’s levels. Strong export demand should continue to underpin lamb prices, with considerable room for upside if supply tightens through autumn and winter.
Key Points
- Lamb exports in 2025 were the second highest on record.
- US lamb prices are strong, supporting imported lamb values.
- Export demand should continue to support Australian lamb prices.
Click on figure to expand
Click on figure to expand
Click on figure to expand
Data sources: MLA, Steiner, DAFF, USDA, Mecardo
