Australasian Lamb Supply Down Next 6 Months

MEDIA RELEASE

DATE: 18 April 2007

Australasian Lamb Supply Down Next 6 Months

The export lamb supply for the year from April to September 2007 is expected to be down 16 per cent or 1.6 million head on the same period last year.

This decrease follows high lamb production in the first half of the year - up 11 per cent (1.6 million head) on the previous year. For the year to 30 September 2007 total export lamb production is estimated at 24.8 million head and is almost the same (+0.2%) as the previous year.

At the end of January export lamb production was 21 per cent ahead of the same period in the previous year. The early high production was brought about by dry seasonal conditions in many regions coupled with falling to weak export lamb prices that encouraged an early slaughter. Lamb slaughter weights to date of 16.85 kilograms were 1.6 per cent behind last season and reflect the early slaughter trend and tighter feed conditions.

The decrease in lamb export supply for the last six months of this season also coincides with lower Australian lamb production. Australian lamb production was up 10 per cent in the six months to the end of February 2007 and Meat and Livestock Australia expects its annual production to be 7 per cent higher this year due to the increased emphasis on lamb production in recent years and the drought effect. However, Australian lamb supplies are expected to tighten in the 2007 June quarter and decrease further in the 2007 September quarter compared with last year.

Looking ahead to the 2007-08 season the export lamb supply is expected to remain similar to the current year. Australian lamb production is expected to decrease about 7 per cent on the current year. This reflects the impact of the drought which has reduced their sheep numbers by about 6 million this year to 94 million head.

New Zealand exports 92 per cent of its lamb production consuming only 8 per cent on the local market. Australia in contrast consumes around 60 per cent of its lamb production and exports 40 per cent.

New Zealand lamb exports on a shipped weight basis total 310,000 tonnes and Australian lamb exports total 157,000 tonnes.

ends

© Scoop Media