The Australian sheep industry has had a blistering start to 2017 with the national trade lamb indicator price averaging 14.5 per cent higher in the first quarter of the year than in the final quarter of 2016, according to Rural Bank and Rural Finance’s April 2017 Australian Sheep Update.
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A combination of strong demand and low supply has helped prices for all categories of lambs more than double the five year average increase of 6.5 per cent in the space of just three months.
The report - launched by specialist insights team Ag Answers - provides producers and industry with a concise quarterly analysis of the Australian sheep sector.
The Australian Sheep Update revealed lamb exports have started 2017 in a strong position with volumes for January and February increasing 4.1 per cent on the same period last year.
The export price per tonne is also 11.5 per cent higher, which has in turn lifted the value of lamb exports by almost 17 per cent.
Andrew Smith, General Manager Agribusiness for Rural Bank and Rural Finance, said the continued demand for Australian lamb was extremely encouraging.
“With the value of our lamb exports continuing to significantly rise due primarily to a dramatic increase in demand for Australian lamb from the Chinese market, the industry is well placed to record strong gains this year,” Mr Smith said.
“The exceptional prices recorded in the first quarter of this year has set sheep farmers up for 2017, and with tighter sheep and lamb availability expected to continue throughout the winter, there is nothing to suggest this will change in coming quarters.”