A year in review: the Australian sheep and lamb market

Key points:

Following the volatile market last year, producers acted cautiously in 2024.
Differing conditions across the country promoted trade and competition.
Record production was driven by strong export demand.

2024 has been a year of recovery, nervousness and record production. Compared to the previous 12 months, the sheep and lamb market has shown strength and stability. However, when we look further back, unpredictability and volatility have continued to impact producers across the country.

Cautiousness

Coming out of an extremely volatile market, the sheep and lamb sector entered the new year in seeming recovery. Driven by a positive summer across much of the east coast, markets reflected a move beyond the confidence and climate-impacted 2023. The market, however, did not remain in recovery, and instead fell more dramatically than the previous year. Producer sentiment in May reached +4, remaining 22 points below the previous year. This initial volatility impacted producer confidence in the market as well as trading decisions. Cautiousness remained through the year as prices lifted in the autumn market and continued as prices surpassed the 2023 market.

Duality of conditions

As the year continued, quality had the largest impact on price. This reflects a market before recent history, where liquidation and rebuild have driven supply and demand influences. The Australian flock was sitting at its largest in over a decade. Strong supply, partnered with solid international and domestic demand, led to record export volumes. Growth in both established and emerging markets shows that as the top exporter of sheepmeat, Australia has been able to keep up with our improving production.

Strong export demand has maintained competition in the domestic livestock market. This demand has caused market protection across the country as conditions have varied dramatically.

Regions across SA, Victoria, and NSW have experienced extremely tough conditions. Faced with a positive summer season, many producers started the year well. However, conditions dried up fast and hard, placing producers in a position of possibly being overstocked and relying on feed. Alternately, central and northern NSW and sheep pastoral zones generally experienced positive conditions, creating an environment that supported quality and promoted trading. This has led to a very strong year-end as finished lamb prices have remained firm much later than the seasonal norm.

WA continued to operate differently from eastern states without the support of close markets. The state began the year on a low base as dry conditions impacted joining and selling decisions. Turn-off and individual destocking led to a surplus of stock.

There were two main outcomes:

Prices did not see the same recovery as the eastern market.
For a period, more animals were turned off than could be absorbed by domestic processors.

This price and stock availability caused a significant movement of stock out of the state, with commentary noting WA animals were travelling even beyond neighbouring SA.

Production

Production of lamb and mutton has skyrocketed thanks to supply and a growth in processor capacity. Looking into weekly slaughter, initially, 2024 followed regular seasonal trends; however, focusing on the tail end of this year, there has been a clear new focus for processors.

Mutton volumes have lifted dramatically across the country, indicating strength in our export market demand but also an indication of producer decision making. Across WA, the proportion of mutton over lamb is relatively high, showing that producers may be eating into their breeding flock. On the east coast, all states have lifted their production mutton, especially NSW, which just last week processed more than 50% of mutton on lamb, which hasn’t been done since 2007.

Producers are becoming more efficient in production and are able to produce more lambs from less due to genetic, fertility and breed investments. With the reduction of wool production, dry conditions, a large ewe flock, and generally firm mutton prices, decisions have been made around the retention of older stock.

The processing sector’s ability to keep up with the sheep supply is growing. Finishing off with some numbers, based on the year-to-date National Livestock Reporting Service (NLRS) slaughter volumes, combined sheep and lamb slaughter – adjusted up to account for an approximate 20% coverage gap of the NLRS – we have processed more than 37 million sheep and lambs in 2024, with three weeks to go. Australia has not surpassed 35 million in a total calendar year before, enforcing how capable the sector is to absorb a new normal of production.

Looking ahead to 2025

The past 12 months have demonstrated the ability of the sheep sector to recover. An elevated flock, strong supply of stock, and even stronger supplies of sheepmeat, have been absorbed into the domestic and international production systems. Australia is operating in an elevated state which is likely to remain into 2025. Without predicting any extreme climatic conditions (wet or dry), we are likely to continue to produce elevated levels of sheep and lamb.

Three things to keep an eye on into 2025:

growing international markets, including the emerging UK and India FTA opportunities
the United States protein situation, which will impact more than just cattle and beef
breed dynamics – the growth of shedding sheep and the move away from Merinos and wool – how will this impact sheepmeat production moving forward?

Attribute to: Erin Lukey, MLA Senior Market Information Analyst

Tired of Turkey? Try These Alternative Christmas Meats

The Best Alternative Christmas Meats to Buy if You Don’t Want Turkey

For many, turkey has become synonymous with Christmas, but it’s not everyone’s cup of tea. Whether you’re looking to switch things up or cater to a family that isn’t fond of turkey, the good news is that there are plenty of fantastic alternatives that can add flavour and flair to your festive table.

Here are some of the best alternative meats to consider for Christmas this year:

1. Goose

Goose is a classic Christmas meat, particularly in the UK before turkey took the spotlight. It’s a richer, fattier bird that offers a succulent, deep flavour. The bonus of choosing goose is the generous amount of fat it renders, perfect for crispy roast potatoes. The meat has a lovely, gamey taste that pairs well with traditional Christmas trimmings like red cabbage, apples, and even chestnuts.

2. Duck

Duck is another bird that works well for Christmas. It has a distinctive flavour that’s more intense than turkey but not as rich as goose. The juicy meat and crispy skin make it a hit at festive dinners. Serve it roasted with seasonal vegetables and a fruity sauce, like plum or orange, to bring out the best of its flavour.

3. Beef

Roast beef is an excellent alternative for those who prefer red meat. A prime rib or a beef tenderloin can make for a spectacular centrepiece, offering a hearty, robust flavour that pairs beautifully with Yorkshire puddings and all the Christmas trimmings. The beauty of beef is its versatility – whether you like it rare or well-done, it can easily be tailored to your taste.

4. Lamb

Lamb offers a tender, flavourful option that can bring a Mediterranean twist to your Christmas feast. A leg of lamb, roasted with garlic, rosemary, and thyme, makes for a succulent and aromatic meal. Its rich flavour complements sides like roasted root vegetables, mint sauce, and even a dash of pomegranate for a festive touch.

5. Pork

A roast pork joint, especially one with crackling, is a show-stopper at Christmas. It’s an indulgent, juicy choice that pairs well with apple sauce and roasted veggies. Consider a glazed ham for a more traditional touch – honey, mustard, and cloves work perfectly to give your pork a festive sweetness that everyone will enjoy.

6. Venison

For something a little more adventurous, venison is a superb choice. Its gamey flavour, lean texture, and seasonal appeal make it an excellent alternative to turkey. Roast venison, cooked with juniper berries or red wine, can make a truly elegant Christmas meal. Serve with roasted vegetables and a rich sauce to enhance the flavour.

7. Chicken

If you’re after something simple and familiar, a free-range roast chicken can be a great alternative to turkey. It’s versatile, widely available, and easier to manage in smaller households. Plus, chicken can be jazzed up with festive stuffing, crispy skin, and all the usual trimmings for a Christmas meal that’s both traditional and delicious.

8. Gammon

A glazed gammon joint is a favourite for many during the festive season. Slow-cooked and then roasted with a sweet glaze, such as honey or marmalade, gammon offers a rich and satisfying flavour. It can be served hot as the main event or cold alongside other meats for a Christmas Day buffet. The salty-sweet taste of gammon pairs perfectly with mustard, pickles, and roasted potatoes.

9. Pheasant

For a touch of something unique, pheasant is a traditional British game bird that’s lighter than duck or goose but still full of flavour. It’s ideal if you want to offer your guests something a little different. Serve it roasted with seasonal fruits like pears or cranberries to highlight its delicate, gamey taste.

Tips for Choosing Your Alternative Meat

Consider the size of your gathering: Some meats, like goose or beef, are better suited for larger crowds, while chicken or pheasant work well for smaller parties.
Think about flavour: If you want something richer and more indulgent, meats like duck, lamb, or venison are ideal. For something more subtle, consider chicken or gammon.
Don’t forget the sides: Whatever meat you choose, remember that festive side dishes – from crispy roast potatoes to rich gravies – can elevate your meal to the next level.

Christmas is the perfect time to experiment with different meats and create new traditions around the table. Whether you go for the gamey richness of venison, the tenderness of roast beef, or the classic appeal of a glazed ham, there’s no reason to feel tied to turkey.

Whichever meat you choose, the festive spirit and a beautifully set table are what truly make Christmas dinner special.

Pickstock Expands to Scotland

A multi-million pound expansion by an English meat processing firm into Scotland has been approved.

Shropshire-based Pickstock has been granted planning permission to build an abattoir close to the A74(M) near Ecclefechan in Dumfries and Galloway.

The company said the scheme would create up to 60 full-time jobs and reduce travel times for animals currently being taken to its site in Telford.

Dumfries and Galloway Council’s planning committee went with officer recommendations to approve the scheme.

BBC News

Two UK Sites Re-Listed for Chinese Pork Exports

UK pork exports to China have received a boost with the re-listing of two sites after a huge collaborative effort between many stakeholders, including government departments, industry and AHDB.

The re-listing followed a relentless effort over several years which included frequently bringing the right parties together in the two nations to support discussions and demonstrate the exceptionally high standards of the industry and the sheer economic value of trade to China. This kept the issue alive and front of mind whenever possible.

China remains the UK’s biggest export market for pork. In 2023 the UK exported £180m worth of pig meat to China and shipped £117m worth of product in the first three-quarters of 2024.

Angela Christison, AHDB Pork Sector Director, said:

“Today’s announcement is fantastic news. Around 50% of the world’s pork is consumed in China. It’s impossible to overstate the importance of this market with its growing demand.

“The potential for our high-quality pork is immense and we look forward to continuing working with government and industry to maximise the opportunities.

“Going into 2025 this will be a welcome boost for the UK pork sector, and we look forward to achieving further success.”

AHDB

Irish Cattle Trade & Prices Update: Throughput and Trends

Throughput

There were 39,812 cattle processed in DAFM approved plants last week, an increase of just over 1,000 head from the previous week. This uplift is primarily due to an increase in the young bull kill when compared to the previous week.

Prime cattle throughput YTD is currently on par with the same period last year at 1,639,020 head although a notable tightening in prime cattle availability is expected as we move into the final quarter of the year. A contraction in cattle numbers on the ground and a lively export trade have contributed to this outlook with numbers expected to remain tight for much of 2025.

Average carcase weights also continue to trend below previous years with the combination of a challenging grass growing season and a growing dairy influence on the prime cattle kill playing a role in the decline. The downward trend in average carcase weights is expected to continue in the short to medium term with calf registrations to suckler cows continuing to decline, while the number of beef sired calves produced from the dairy herd continues to increase.

Prices

There was a lift in the steady base quotes at Irish meat plants this week in response to tighter supplies and an expected increase in retail and foodservice demand for the Christmas period. In general, producers were offered a base price of €5.30/kg for steers with reports of up to €5.40/kg available.

Starting quotes for heifers are in the region of €5.40/kg this week with similar room for negotiation being reported. The trade for young bulls was also described as steady, with prices of between €5.60/kg and €5.70/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O+ grading suckler cows being offered prices of €5.00-5.10/kg, while prices for O grading dairy cows generally range from €4.90-5.00/kg. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending 24th November 2024, the average price paid by Irish beef processors for R3 increased slightly by 2c/kg to be at €5.31/kg. This remained 59c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.72/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices

Across the EU, the average reported price for R3 grading young bulls was €5.54/kg (excluding VAT) for the week ending 24th November, 2024. This is 49c higher than Week 46 of last year when prices averaged €4.89/kg for this category.

In the UK, tighter cattle supplies and firm demand have meant deadweight beef prices have continued to firm. This week the average UK R3 steer price increased by 3c/kg to €6.33/kg.

Bord Bia

Strong Demand Drives Irish Sheep Prices Higher

Strong Demand Drives Irish Sheep Prices Higher

Quotes

Base quotes from the major processors have improved slightly this week with €7.90/kg – €8.00/kg for well finished lambs (+QA bonus) on offer. With well fleshed lambs in demand, some major processors have also increased paid carcass weight limits, with all main plants paying for a 23kg carcass.

Relatively tight lamb supplies combined with some stability in demand from the domestic and export markets have contributed to this firming of the trade all year. Tighter lamb supplies are also a feature in other key lamb producing regions of Europe and the UK with the latest Eurostat figures indicating a contraction in breeding flock numbers in many regions.

The Irish ewe flock contracted by 3.7 per cent in the December 2023 census versus December 2022 levels. This decline in the ewe flock of 107,000 head is one factor contributing to the tightness in supplies currently.

Prices

Last weeks reported deadweight price increased by 7c/kg to €7.74/kg, reflective of the continuing improvement recorded in quoted prices from the major lamb processors. In the corresponding week in 2023 the reported deadweight price was €6.46/kg. The deadweight trade has also improved across the UK regions.

Reported spring lamb prices in mainland GB were the equivalent of €7.93/kg last week (+12c/kg) while in Northern Ireland there was a notable improvement in the trade to be €7.67/kg (+9c/kg). Relatively tight supplies of lamb for slaughter in Northern Ireland combined with competition from the live export trade to both mainland GB and ROI contributed to this firming in the trade.

Southern Hemisphere prices remain well below European prices however they have improved significantly over the last few weeks, narrowing the price differential with the EU. With a lead time on product shipments this recent improvement in deadweight prices should impact their competitiveness on EU markets in the medium to longer term.

Prices this week took a jump and are at €5.30/kg and €4.46/kg for Australia and New Zealand respectively increasing by 11c/kg and 3c/kg after a period of mostly week on week increases for the past 15 weeks.

Throughput

There was a decrease in the total sheep kill in DAFM approved plants last week to 35,740 head, compared to 59,714 the same week in 2023. Tighter supplies has been a feature of the 2024 lamb season to date with a smaller lamb crop, a difficult lambing and changeable grass growing conditions all impacting lamb availability for processing.

Total TYD slaughter is down 9% on 2023 to total 2,318,846 head.

Bord Bia

Irish Cattle Trade & Prices Update: Throughput and Trends

EU-Mercosur Trade Deal Nears

BRUSSELS, Dec 6 (Reuters) – The European Union and South America’s Mercosur bloc are expected on Friday to finalise a free trade agreement but it faces a tortuous battle for approval in Europe given firm French opposition.

After negotiations spanning more than 20 years and five years on from an initially inked deal, European Commission President Ursula von der Leyen and her Mercosur counterparts are due to announce a political agreement at 9.30 a.m. (1230 GMT) in Montevideo, capital of Uruguay.

European farmers have repeatedly protested against an EU-Mercosur deal that they say would lead to cheap imports of South American commodities, notably beef, that do not meet the EU’s green and food safety standards.

Italy said on Thursday there were no conditions for signing off on a deal. Poland said last week it opposed the free trade deal in its current form.

European green groups also broadly oppose the accord. Friends of the Earth calls it a “climate-wrecking” deal.

The trade agreement would require approval from 15 of the 27 EU members representing 65% of the EU population along with a simple majority in the European Parliament.

South American negotiators remain optimistic that the EU will eventually give its approval and that France will not be able to rally a blocking minority.

Reuters

Five Arrested in Food Crime Probe

NFCU officers, together with police, attended a location in London on Monday 25 November 2024 where they discovered unrefrigerated vans containing 48 sheep carcasses.

The meat is thought to be illegal, having undergone a smoking process with its skin on, and is not traceable. Meat should have traceability from farm to fork and be subject to checks by FSA vets and meat hygiene inspectors.

As a result, police arrested five men who were interviewed by NFCU officers. All five have been released under investigation.

FSA

Icelandic Lamb Gains Protected Status

Reykjavík, Iceland – 4 December 2024 – Icelandic Lamb has officially been granted the prestigious Protected Designation of Origin (PDO) status by the European Union, marking a significant achievement for Iceland’s agricultural sector.

This certification recognises the unique qualities and traditional production methods of Icelandic Lamb, ensuring that only lamb raised in specific regions of Iceland can bear this esteemed label.

The PDO status acknowledges the exceptional quality of Icelandic Lamb, renowned globally for its distinctive flavour, tenderness, and high-quality meat.

Raised in Iceland’s lush pastures amidst pristine landscapes, the lambs graze on a natural diet consisting of wild herbs, grasses, and seaweed, which contribute to the unique taste that has made the product a treasured delicacy.

“The PDO designation is a tremendous accomplishment for Icelandic agriculture and a tribute to the dedication of our farmers,” said Guðbjörg Ríkey, head of the Icelandic Meat Producers Association. “This recognition ensures that consumers worldwide can enjoy Icelandic Lamb with confidence, knowing it has been produced to the highest standards, in accordance with traditional practices passed down through generations.”

The PDO status guarantees that only lambs born, raised, and slaughtered in Iceland are allowed to be marketed as “Icelandic Lamb”, safeguarding its authenticity and heritage. It also offers greater protection from counterfeiting and misuse of the name in international markets.

Icelandic Lamb is particularly valued for its lean, tender meat and rich flavour, which is enhanced by the island’s clean, unspoiled environment and traditional free-range grazing practices. The lambs are raised without the use of growth hormones and are fed a diet that includes nutrient-dense wild plants.

The PDO status for Icelandic Lamb now joins other renowned Icelandic products such as Icelandic Skyr, further elevating Iceland’s standing in the global market for premium, sustainably produced food.

As part of the EU’s PDO scheme, Icelandic Lamb will benefit from additional protection against imitation and unfair competition, ensuring that the name remains synonymous with quality and authenticity.

This certification is expected to enhance export opportunities for Icelandic farmers and open new doors to markets across Europe and beyond.

With the PDO status now in place, Icelandic Lamb is set to become a more prominent player in the premium food sector, appealing to discerning culinary enthusiasts who seek products rooted in tradition and heritage.

As the PDO logo appears on packaging, it will stand as a symbol of distinction for Iceland’s prized lamb, celebrated both at home and abroad.

About Icelandic Lamb

Icelandic Lamb is a premium meat product from sheep native to Iceland, raised in the country’s unspoiled natural environment. The lambs graze freely on Iceland’s hillsides and coastal areas, feeding on wild grasses and herbs.

Known for its rich, distinctive flavour, Icelandic Lamb is considered a national delicacy and is highly prized by chefs and food lovers for its tenderness, taste, and sustainability.

Pigs in Blankets: A Christmas Classic

Pigs in Blankets are an undeniable Christmas classic! These delightful, bite-sized treats bring warmth and nostalgia to festive gatherings, whether served as part of the Christmas dinner or as nibbles at a holiday party. Here’s why they’re a must-have:

What Are Pigs in Blankets?

Traditionally, Pigs in Blankets are mini sausages (or chipolatas) wrapped in streaky bacon and baked until crispy. The combination of smoky bacon and juicy sausage makes them a flavour-packed festive favourite.

Why Do We Love Them?

Festive Versatility: Perfect as a side dish, snack, or party canapé.
Easy to Make: With only two main ingredients, they’re simple yet satisfying.
Customisable: Add a sprinkle of herbs, a drizzle of honey, or even a dash of mustard to elevate the flavour.

Serving Suggestions

Classic Christmas Dinner: A must-have alongside turkey, stuffing, and roast potatoes.
Party Platter: Pair with cranberry sauce or mustard dips for the ultimate finger food.
Breakfast Twist: Enjoy them with scrambled eggs or pancakes on Christmas morning.

If you’re in the meat trade, offering pre-prepared, high-quality Pigs in Blankets is a sure fire way to meet demand for the Christmas season. Whether your customers are caterers, butchers, or retailers, these festive favourites are a guaranteed hit.

Get yours here