British lamb output falls and exports down 30pc
BRITAIN
2018 is proving to be a challenging one for UK producers on account of the extreme weather conditions.
According to AHDB forecasts the lamb crop was down by 5pc or about 700,000 head. UK lamb slaughterings in May to July were down 10pc on a year earlier. Shortages of lambs and high prices resulted in a fall of 30pc year on year in export volumes in the second quarter.
Sheep meat imports in the first half of 2018 were lower, by 5pc, on the same period last year due almost entirely to the 9pc reduction for New Zealand.
Domestic demand for sheep meat has been subdued in 2018 especially during the summer months on account of the hot weather and higher retail prices.
CHINA
Chinese import demand has remained firm throughout 2018. New Zealand shipments in January-July 2018 were up 16pc at 118,000 tonnes while Australian trade was up 43pc at 55,000 tonnes.
Prices to this market were up around 20pc in US dollars with tight New Zealand supplies reportedly contributing to this price rise. Domestic production is understood to have edged back, in some cases not helped by intermittent drought.
NEW ZEALAND
Lamb production in 2017/18 has edged up and could be around 2pc higher in the year as a whole. Export growth has been led by a sharp rise in trade to China of 30pc to 161,000 tonnes, while trade to the EU was up just 2pc to 107,000 tonnes.
There is strong confidence in the sheep sector at present with prices now exceeding NZ$8 (€4.50) per kg. Lambing rates have been variable and the lamb crop is estimated 4pc lower at 22.78 million.
Ewe condition has generally been good due to favourable feed availability but lambing rates have been affected by facial eczema and high worm count.
Such developments would suggest a modest downturn in lamb production and exports in 2018/19.
AUSTRALIA
The severe drought in some parts and especially New South Wales, which accounts for one third of the national flock has resulted in strong throughputs of lamb and culling within the breeding flock.
In January-June 2018 Australian lamb production was up 9pc on last year but there are now major shortages of new season lambs in New South Wales and with lamb prices having been at record levels the supply situation is changing.
In line with production developments, lamb exports were up 15pc in January-July compared to a year earlier while mutton exports were up as much as 23pc. For the latest month there is no sign of this growth having eased back as the former was up 13pc and the latter 32pc.