The cattle market is well known for its ebbs and flows with the availability of grass, and the lamb market follows a similar pattern, though to a lesser extent.
The impact of drought on the lamb market is just one thing that Angus Gidley-Baird, animal protein analyst for Rabobank out of Australia, and RealAgriculture’s Lyndsey Smith discuss in this report.
While the Australian domestic market is steady, growth in the lamb market tends to be focused on the export market, with the Middle East being the largest consumer, followed by the United States and then China, says Gidley-Baird.
Another difference between the Australian domestic market and markets abroad is how lamb is consumed. In Australia, consumers are more likely to purchase lamb at the grocery store, but the export market is geared heavily towards the food service industry.
Gidley-Baird explains that the food service industry is one of the first to be impacted during economic downturns, which contributed to lower lamb prices in 2023. However, prices have since rebounded to reasonable levels, albeit not as high as in 2022.
The discussion also covers changes in Australia’s flock composition, as traditional wool producers decide whether to remain in wool production or shift toward the lamb market. Additionally, they explore how logistical challenges impact the strength of the export market.
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