Australian Sheep Meat Exporters Struggle with the Pandemic while Shipments from New Zealand Keep Solid

IndexBox has just published a new report: 'Asia-Pacific - Lamb And Sheep Meat - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

Lamb and sheep meat exports in Asia-Pacific dropped -6.5% to 853K tonnes in 2020. This was shaped by a tangible contraction in Australian supplies, partially offset by rising shipments from New Zealand. Australian lamb exports were hampered by lower demand in China and other destinations affected by the pandemic. China, the U.S. and Malaysia remain key foreign markets for Australian lamb exporters. Suppliers from New Zealand also focus on the Chinese and American markets, with the UK being among the top three destinations.

Lamb and Sheep Meat Exports in Asia-Pacific

In 2020, after three years of growth, there was a significant decline in shipments abroad of lamb and sheep meat, when their volume decreased by -6.5% to 853K tonnes. The export volume peaked at 912K tonnes in 2019 and then fell in the last year. In value terms, lamb and sheep meat exports amounted to $5.2B (IndexBox estimates) in 2020. 

Exports by Country

In 2020, Australia (434K tonnes) and New Zealand (401K tonnes) were the major exporters of lamb and sheep meat in Asia-Pacific, mixing up 98% of total export. The decline in total export figures was due to lower Australian supplies, which decreased by -12% y-o-y. This decrease was shaped by lower shipments to China and other countries where the pandemic hampered the foodservice sector. New Zealand exporters managed to increase their shipments by +2.5% last year.

In value terms, the largest lamb and sheep meat supplying countries in Asia-Pacific were Australia ($2.5B) and New Zealand ($2.5B), together accounting for 98% of total exports.

Lamb and Sheep Meat Export Prices by Country

The lamb and sheep meat export price in Asia-Pacific stood at $6,079 per tonne in 2020, remaining relatively unchanged against the previous year. Over the last eight years, it increased at an average annual rate of +1.1%. The most prominent growth rate was recorded in 2017, an increase of 18% against the previous year. Over the period under review, export prices attained the maximum at $6,131 per tonne in 2019 and fell slightly in the following year.

Average prices varied noticeably amongst the major exporting countries. In 2020, the country with the highest price was New Zealand ($6,317 per tonne), while the average price for Australian lamb and sheep meat amounted to $5,849 per tonne.

Major Markets for Lamb and Sheep Meat Exports from Australia

China (150K tonnes), the U.S. (76K tonnes) and Malaysia (26K tonnes) were the main destinations of lamb and sheep meat exports from Australia, with a combined 58% share of total exports. The United Arab Emirates, Qatar, South Korea, Japan, Singapore, Papua New Guinea, Saudi Arabia, Canada and the UK lagged somewhat behind, together accounting for a further 29%.

From 2012 to 2020, the biggest increases were in South Korea (with a CAGR of +20.3% from 2012-2020), while shipments for the other leaders experienced more modest paces of growth.

In value terms, China ($661M), the U.S. ($614M) and the United Arab Emirates ($143M) appeared to be the largest markets for lamb and sheep meat exported from Australia worldwide, together accounting for 56% of total exports. Malaysia, Qatar, South Korea, Japan, Canada, Singapore, Saudi Arabia, the UK and Papua New Guinea lagged somewhat behind, together accounting for a further 32%.

Major Markets for Lamb and Sheep Meat Exports from New Zealand

China (216K tonnes) was the main destination for lamb and sheep meat exports from New Zealand, accounting for 54% of total exports. Moreover, lamb and sheep meat exports to China exceeded the volume sent to the second major destination, the UK (40K tonnes), fivefold. The U.S. (23K tonnes) ranked third in total exports with a 5.7% share.

From 2012 to 2020, the average annual growth rate in terms of volume to China stood at +13.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: the UK (-6.6% per year) and the U.S. (+1.3% per year).

In value terms, China ($1.1B) remains the key foreign market for lamb and sheep meat exports from New Zealand, comprising 42% of total exports. The second position in the ranking was occupied by the UK ($274M), with an 11% share of total exports. It was followed by the U.S., with an 8.6% share.

Source: IndexBox Platform