West Australian sheep producers have ‘strong opportunity’ to expand booming lamb exports to UK: analyst

WA sheep producers have an unprecedented chance to tap into demand for lighter lamb carcasses in the UK, as sheepmeat exports boom after a free trade agreement took effect last year. Exports of Australian sheepmeat to the UK have lifted by 120 per cent since the landmark deal came into force, according to Meat and Livestock Australia. While the US remains the biggest market for Australian sheepmeat, MLA senior market information analyst Erin Lukey told producers in Perth recently the UK FTA presented a “strong opportunity” for WA. “The UK take a lighter carcase . . . the average carcase in the UK, they like an 18kg to 22kg animal,” she explained. “WA fits really quite well into that high-value, mid-weight lamb carcase range.” Australia’s main competitor, New Zealand, has been experiencing a consistent decline in its sheep flock for decades. With NZ exporting more than 90 per cent of its lamb and mutton, decreases in production have a direct impact on export volumes. “New Zealand is at their lowest flock on record and they’re trending downwards,” Ms Lukey said. “We’ve seen processing plants shut down over there, so it’s a strong opportunity for us to play in markets where NZ are playing in at the moment.” Ms Lukey made the comments at the annual conference of the Australian Association of Agricultural Consultants in Burswood on November 29. With New Zealand “backing off”, she said the WA lamb carcase was “most aligned” with UK market demand. “It’s a really strong opportunity, as we open the market into the UK, for WA,” she said. “For the lighter lamb carcase, that’s a great avenue for your product because the average Australian carcase is up around 24kg and that’s well out of their spec.” The UK FTA, which took effect on May 31 last year, unlocked 25,000 tariff-free tonnes of Australian sheepmeat exports into the UK in the first 12 months. That figure will rise to 75,000 tonnes by 2028, with tariffs set to be eliminated after the first decade. Ms Lukey said opportunities also existed in India, where an FTA that took effect at the end of 2022 granted Australia zero-tariff sheepmeat access but remained largely “inactivated”. “Their population is growing 3 per cent; their wealthy and affluent households are growing over 131 per cent — this is the outlook for the next five years,” she said. “That has translated to a forecast of domestic sales of lamb increasing by over 50 per cent . . . as more wealthy households start to purchase more red meat.” MLA was working hard to tap into the Indian market, she said. “Again, that is something that WA would be really well-suited for with the lighter carcase, but also proximity to India — it’s a close trip,” she said. “I think a lot of product should be able to go there, and there is growing demand for it, which is positive.” Australia is experiencing record sheepmeat production and is the world’s largest exporter of sheepmeat, accounting for 50 per cent of global trade in 2023. More than 326,000 tonnes of Australian lamb and 209,000 tonnes of mutton were exported globally last year.