The latest sheep price dashboard data published by Bord Bia shows continued significant recovery in Australian lamb prices.

The average price of lamb reported for the week of 13 January 2024 was €4.69/kg.

This represents an increase of over €1.50/kg since the end of November, with prices recorded at €3.02/kg on 25 November.

The sharp upturn in price is being underpinned by renewed confidence in the sheep sector following steady rainfall and favourable grass growth.

Record sheep throughput in the first quarter of 2023 initially inserted downward pressure in the trade, with reduced demand in the US and China eroding confidence in markets.

Tight feed supplies

This compounded concerns of drought and tight feed supplies which worsened as the year progressed on the back of predictions of an El Nino weather effect.

With prices already under pressure and tight feed supplies, producers in some regions moved to drop numbers to reduce their exposure to higher costs.

Steady rainfall in recent weeks has brought about a major improvement in feed reserves and brought renewed confidence to the sector.

This has also coincided with a strengthening in global sheepmeat markets and resulted in a significant upturn in farmgate sheep prices.

Price round-up

The recovery in farmgate prices has unfortunately not been witnessed in New Zealand, where prices remain under pressure.

The average price reported for the week of 13 January 2024 was just €3.38/kg.

Persistent challenges in the Chinese economy, which now accounts for 50% of New Zealand exports, has hit New Zealand sheepmeat prices hard.

There is a slight recovery in China’s sheepmeat import demand in 2024, but there is less certainty surrounding the average price returned by the Chinese market.

Farmgate prices in many countries in Europe are steady at a high level or on an upward trajectory.

The average farmgate sheep price in Spain is running at €8.86/kg, with prices in France recorded at €8.11/kg.

Lamb prices in Britain average €7.05/kg for the week of 13 January, €6.56/kg in Ireland and just the equivalent of €6.11/kg in Northern Ireland.