Huge room for growth
Outlook for sheep and wool good
THIS week in the Rural Weekly we review some of the presentations from the Young Beef Producers Forum last week.
Robert Herrmann from Mercado spoke about the outlook for the sheep and wool industries.
There is plenty of room for growth in Australia’s sheep and wool industries, with increased demand driving prices and creating a positive outlook.
For the first time in the event’s history, the Young Beef Producers Forum included presentations about sheep.
Robert Herrmann from Mecardo provided statistics on the sheep industry, showing the opportunities and challenges of sheep and wool production.
Mr Herrmann said by 2030 there will be 3.2 billion middleclass people in Asia compared to 32 million in the United States.
“(Asia) is not only going to have increased population, but increased wealth,” Mr Herrmann said. “And increased wealth brings increased disposable income.
“In the past you see developing countries go through these stages, and one of the things that happens is the consumption of proteins and fats and carbohydrates dramatically increases.”
Mr Herrmann said reports from the Organisation for Economic Co-operation and Development predict the demand for sheepmeat is going to continue to grow.
Mr Herrmann said the world’s sheep flock was increasing.
“The biggest sheep flock in the world is actually in China, by a mile, and it’s growing,” he said.
“The other sheep flock that’s growing is in Nigeria. But those two flocks aren’t likely to be exporting anything.
“The ones that count are Australia and New Zealand, the ones with the export capacity.”
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