There is contrasting fortunes for sheep farmers in the southern hemisphere.

Lamb prices in Australia have increased by the equivalent of over €1/kg in recent months.

The latest data published by Bord Bia for the week of 6 July 2024 shows prices rising above €5/kg.

The recent upward movement in price has intensified this week, with Meat Livestock Australia reporting prices ranging from €5.30/kg to €5.55/kg depending on location.

Improved demand and more favorable pasture conditions for finishing lambs is generating renewed optimism.

Australia has developed inroads in the Chinese market in 2024 on the back of a free trade agreement, while demand from the US is also helping market performance.

The situation for New Zealand sheep farmers remains hugely challenging, with the latest farmgate lamb prices reported at just €3.70/kg.

The loss of market share in the Chinese market has been particularly damaging, with New Zealand looking to alternative markets.

Reports indicate higher volumes of New Zealand sheepmeat have been entering the UK and EU market in recent months, with lower-priced product creating more challenging conditions in some markets, particularly in the food service sector.

Supplies in New Zealand should now be declining in the short term with lambing taking place.

EU prices

The price table also shows a widening differential emerging in recent weeks between prices in France, Spain and other EU countries, including Ireland. The latest prices does not take account of cuts imposed last week.

There is a brighter outlook to the lamb and ewe trade for next week, with prices holding steady and firming in cases.

Base quotes continue to range anywhere from €6.80/kg to €7.20/kg, with quality assured lambs ranging from €7/kg to €7.30/kg. Prices at the top end of the market are rising to €7.35/kg to €7.40/kg for large consignments.

The mart ewe trade is also much sharper with a number of buyers purchasing ewes for exporting live now active.

Prices for heavy ewes in particular are exceeding equivalent deadweight prices and producers are advised to consider the most lucrative market outlook.