The latest export statistics published by the Australian Government’s agricultural department shows that as of 15 November 2024 Australia has exported over 22,000t of sheepmeat to the UK. This represents an increase of over 10,000t when compared to 2023 volumes for the calendar year.

The increase in trade volumes has been facilitated by the Australia-United Kingdom Free Trade Agreement (A-UK FTA) signed in December 2021 and which grants Australia increased access to the UK sheep market.

Under the terms of the agreement Australia can export an increasing quantity of sheep meat to the UK market, starting at 14,700t in 2023 and rising to 75,000t over a 10-year period.

DAFF figures

Figures from the Australian Government Department of Agriculture, Fisheries and Food (DAFF) shows that Australia has exported 10,998t of its 30,556t tariff-free A-UK FTA quota up to 15 November 2024, or approximately 36% of its allocation.

The other 11,000t exported to the UK is categorised under Australia’s World Trade Organisation (WTO) UK sheepmeat quota which totals 13,335t. Australian sheepmeat production has been running at record levels in recent years with sheepmeat production forecast to grow by 11% in 2024 and reach a massive figure of 665,000t.

The increased availability of sheepmeat for exporting and wide differential between Australian and UK/EU sheepmeat prices has encouraged exporters to look more closely at the UK market. Reports indicate that processors and industry personnel have been working hard at developing trading links which are now starting to bear fruit.

A decrease in the volume of New Zealand sheepmeat being exported to the UK is also said to be supporting higher trading volumes. Meat and Livestock Australia report that the majority of Australian sheepmeat exports to the UK have been both chilled and frozen lamb leg, frozen mutton leg, frozen lamb trimmings, lamb shank, lamb shortloin and frozen mutton thick and thin skirt.

Market consequences

A differential of over €2/kg between Australian and UK farmgate lamb prices is likely to sustain continued trade. An increased availability of sheepmeat and in particular the likelihood of a lower price point will create more competition in the market place for British, Irish and Northern Ireland farmers all targeting a market where consumption also remains under pressure.

Australia also has access to a smaller EU WTO sheepmeat tariff-free quota of 5,851t and it has filled almost 83% of this for the year-to-date.