Australian sheep Industry projections 2014 Australian sheep industry projections 2014 Authors: Tim McRae, Jonathan Meggison and Rebecca Matthews For more information call MLA on 02 9463 9163 Published by Meat & Livestock Australia Ltd February 2014 © Meat & Livestock Australia Ltd, 2014 ISSN 1329-2994 While endeavouring to ensure that the information contained in this publication is correct, MLA makes no representation as to, and accepts no liability for, the accuracy of such information including, but not limited to, the forecasts. i MLA’s Market Information Service – Australian sheep industry projections 2014 Contents Introduction .............................................................................. 1 2013 – the key numbers ....................................................... 2 Overview of 2014 supply and demand projections ......... 3 Key assumptions ................................................................... 4 Situation and outlook 2014–2018 ........................................ 5 Australian sheep flock ........................................................... 6 MLA and AWI wool and sheepmeat survey ...................... 7 Lamb slaughter ...................................................................... 8 Mutton slaughter ................................................................... 9 Lamb and mutton production and carcase weights ..... 10 Sheep farm incomes ............................................................ 11 2014 demand outlook .................................................... 12-14 New Zealand ........................................................................ 15 Australian market ................................................................. 16 Australian market ...................................................................................................... 17 Australian economy ................................................................................................. 17 Consumer trends ..................................................................................................... 17 Retail prices ............................................................................................................... 18 Retail value and volume trends .............................................................................. 18 Foodservice trends .................................................................................................. 19 Middle East .................................................................... 20-22 United States ................................................................. 23-24 China ............................................................................... 25-27 European Union ................................................................... 28 Japan ..................................................................................... 29 Hong Kong and Taiwan ...................................................... 30 South East Asia .................................................................... 31 Other ...................................................................................... 32 Papua New Guinea .................................................................................................. 32 South Africa ............................................................................................................... 32 Russia ......................................................................................................................... 32 Korea .......................................................................................................................... 32 Offal ........................................................................................ 33 Live exports – summary ..................................................... 34 Live exports – markets ........................................................ 35 Statistical appendices ......................................................... 36 Appendix 1 – Mutton 20x10 ............................................................................. 37-38 Appendix 2 – Lamb 20x10 .............................................................................. 39-40 Appendix 3 – Live sheep exports .......................................................................... 41 Sources and acknowledgements .................................... 42 Acronyms .............................................................................. 43 MLA’s Market Information Service – Australian sheep industry projections 2014 ii Contents List of Figures Figure 1 Australian rainfall 1 Jan 2013 to 31 Dec 2013 ................................................ 4 Figure 2 Australian rainfall outlook – February to April 2014 ...................................... 4 Figure 3 A$ against US$ .................................................................................................. 4 Figure 4 Australian sheep flock ...................................................................................... 6 Figure 5 Australian sheep flock by state ...................................................................... 6 Figure 6 Ewe flock size intentions ................................................................................. 7 Figure 7 Lambs on hand and expected lamb sales – Australia ................................ 7 Figure 8 Marking rates – Australia ................................................................................. 7 Figure 9 Australian lamb slaughter ................................................................................ 8 Figure 10 Monthly Australian lamb slaughter ............................................................... 8 Figure 11 Quarterly lamb slaughter and saleyard prices ............................................ 8 Figure 12 Australian sheep slaughter ............................................................................ 9 Figure 13 Australian monthly sheep slaughter ............................................................ 9 Figure 14 Quarterly sheep slaughter and saleyard prices ......................................... 9 Figure 15 Australian lamb production ......................................................................... 10 Figure 16 Mutton production and carcase weight ................................................... 10 Figure 17 Australian slaughter lamb farm income ...................................................... 11 Figure 18 Australian lamb exports ............................................................................... 12 Figure 19 NZ lamb exports ............................................................................................ 15 Figure 20 Sheepmeat export volume Aus v NZ ....................................................... 15 Figure 21 Domestic lamb utilisation ............................................................................. 17 Figure 22 Mutton exports and domestic utilisation .................................................. 17 Figure 23 Australian retail meat prices ....................................................................... 18 Figure 24 Restaurants, cafes and takeaway turnover cycle .................................. 19 Figure 25 Australian retail fresh meat shares ............................................................ 19 Figure 26 Lamb exports to the Middle East .............................................................. 21 Figure 27 Lamb exports to the Middle East – by market ........................................ 21 Figure 28 Lamb exports to the Middle East by cut – 2013 ..................................... 21 Figure 29 Mutton exports to the Middle East .......................................................... 22 Figure 30 Mutton exports to the Middle East – by market .................................... 22 Figure 31 Mutton exports to the Middle East by cut – 2013 .................................. 22 Figure 32 Lamb exports to the US ............................................................................. 24 Figure 33 Lamb exports to the US by cut – 2013 .................................................... 24 Figure 34 Mutton exports to the US .......................................................................... 24 Figure 35 Lamb exports to China ............................................................................... 26 Figure 36 Lamb exports to China by cut – 2013 ...................................................... 26 iii MLA’s Market Information Service – Australian sheep industry projections 2014 Figure 37 Mutton exports to China ............................................................................. 27 Figure 38 Mutton exports to China by cut – 2013 .................................................... 27 Figure 39 Lamb exports to EU .................................................................................... 28 Figure 40 Lamb exports to EU by cut – 2013 ........................................................... 28 Figure 41 Mutton exports to EU .................................................................................. 28 Figure 42 Lamb exports to Japan .............................................................................. 29 Figure 43 Lamb exports to Japan by cut – 2013 ..................................................... 29 Figure 44 Mutton exports to Japan ........................................................................... 29 Figure 45 Lamb exports to Greater China ................................................................ 30 Figure 46 Mutton exports to Greater China ............................................................. 30 Figure 47 Lamb exports to SEA ................................................................................... 31 Figure 48 Mutton exports to SEA ................................................................................ 31 Figure 49 Lamb exports to other markets ............................................................... 32 Figure 50 Mutton exports to other markets ............................................................. 32 Figure 51 Lamb exports to Africa and the Pacific ................................................... 32 Figure 52 Australian Offal Exports .............................................................................. 33 Figure 53 Australian sheep offal by cut – 2013 ........................................................ 33 Figure 54 Australian live sheep exports .................................................................... 34 Figure 55 Australian live sheep exports by destination .......................................... 35 Figure 56 Live sheep exports by destination ........................................................... 35 List of Tables Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Situation and outlook for the Australian sheepmeat industry ................. 5 Australian exports of lamb ........................................................................... 13 Australian exports of mutton ....................................................................... 13 Australian live sheep exports (head).......................................................... 34 Australian mutton exports to top 20 destinations and major regions by the 10 main cuts ................................................................. 37-38 Australian mutton exports to top 20 destinations and major regions by the 10 main cuts ................................................................. 39-40 Calander year live sheep exports ............................................................... 41 Introduction 2014 shapes as a very interesting year for the Australian lamb industry, as the medium-term prospects for increased supplies hinge firmly upon seasonal conditions, while in contrast, the export potential for the industry is extremely robust. In conclusion, demand prospects for the Australian lamb industry look very positive for 2014, underpinned by a global market looking for additional supplies, combined with a lower A$ and reduced competition from NZ. This, together with a fall in Australian supplies, should have a positive impact on prices, provided seasonal conditions improve and enable Australian producers to finish lambs to meet market requirements. After a record supply and export year in 2013, overall production volumes are expected to drop back in 2014. However, export markets will continue to increase their share of production – maintaining the long-term trend and underpinning an expected price rise. While drought and a scorching summer across most key lamb producing regions of Australia will be felt on supplies throughout the first half of 2014, the impact of seasonal conditions upon lambing rates in the year ahead will be crucial. With the Australian flock expected to feel the impact of the record lamb slaughter and surge in Meat & Livestock Australia’s Market Information sheep slaughter in 2013, the overall supply of lamb is expected to tighten into the second half of 2014 and through 2015. So, while the supply prospects for Australian lamb over the medium-term will depend, in part, on seasonal conditions throughout 2014, the demand for lamb in overseas markets looks very clear. With the A$ assumed to trade lower throughout the year, decreased supplies out of NZ and expanding demand from major markets, Australian lamb and mutton will be in strong demand. The combination of China, the Middle East and the US will continue to take the majority of Australian shipments throughout 2014. As a result, the domestic market (still Australia’s largest single lamb market) could feel a greater impact on supplies and retail prices if either supply tightens more than expected throughout 2014, or indeed, export conditions strengthen even further. While the number of live sheep exported for 2014 is expected to increase, this is largely dependent upon further market access improvements, especially into the MLA produces a wide range of market information publications, which can be accessed for the latest news, analysis and statistics for the Australian red meat and livestock industry. From MLA Livestock Market Officers at saleyards each day, through to annual forecast and statistical compilations, the provision of timely, accurate and continuous market information is a key service provided to MLA members and stakeholders. All of MLA’s market information publications, including the Australian Cattle Industry Projections 2014, are available at www.mla.com.au, or through a direct email service. If you would like to contact MLA’s Market Information Service, please email [email protected], or call (02) 9463 9163. Middle East, while the supply of suitable stock (given the lower flock) will remain tight. MLA’s Market Information Service – Australian sheep industry projections 2014 1 2013 – the key numbers Australian lamb slaughter in 2013 is estimated at 21.9 million head – the highest on record. Australian mutton slaughter for 2013 is estimated at 9.5 million head – the highest since 2008. The national sheep flock at 30 June 2013 is estimated to be 74.2 million head, back 500,000 head, or 0.7%, year-onyear. Total lamb production in 2013 reached an estimated 460,000 tonnes cwt, up 3.3% – the highest production year on record. Drought-induced adult sheep slaughter caused mutton production to increase 53.1% year-on-year, to an estimated 214,000 tonnes cwt – the highest since 2008. Live sheep exports are estimated to have declined 17.5% in 2013, to 1.88 million head – the smallest yearly volume on record. Lamb exports smashed the previous record and hit 214,000 tonnes swt – dominated by the US, China and the Middle East. Mutton exports reached 172,000 tonnes swt, up 61.2% yearon-year and the highest volume since 2001. The Eastern States Trade Lamb Indicator averaged 423¢/kg cwt for 2013, up 1.4% year-on-year. 2 MLA’s Market Information Service – Australian sheep industry projections 2014 Australian lamb prices 800 A¢/kg cwt Restocker saleyard Trade saleyard Heavy trade OTH 600 400 200 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Source: MLA's NLRS Weighted average saleyard lamb price 700 600 500 400 300 200 100 0 A¢/kg cwt Nominal Indexed 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 Source: MLA's NLRS, ABARES Australian sheep prices 500 A¢/kg cwt sheep saleyard 400 sheep OTH 300 200 100 0 02 03 04 Source: MLA's NLRS 05 06 07 08 09 10 11 12 13 14 Overview of 2014 supply and demand projections Australian lamb slaughter forecast to decrease 4.3% in 2014, to 20.95 million head Australian sheep slaughter to contract 36%, to 6.1 million head The Australian sheep flock to fall 3% in the year to 30 June, 2014, to an estimated 72 million head Australian live sheep exports in 2014 are forecast to increase 22.3%, to 2.3 million head* Australian lamb utilisation to decline 8.3% in 2014, to 193,000 tonnes cwt Lamb exports to maintain long-term trend of making up a greater proportion of annual production – forecast to hit 56.1% Lamb exports to reach 211,000 tonnes swt in 2014 Lamb exports to the US, China and the Middle East are all expected to increase in 2014, making up 69% of total exports Mutton exports to be constrained by lower production, forecast to reach 110,000 tonnes swt in 2014 – dominated by China and the Middle East *based on assumption of markets reopening to Australian sheep. MLA’s Market Information Service – Australian sheep industry projections 2014 3 Key assumptions As part of MLA’s bi-annual Sheep and Lamb Industry Projections, a series of “key The latest three month rainfall outlook from the Bureau of Meteorology indicates assumptions” need to be outlined. While many of these assumptions are outside that conditions for February – April will be largely neutral. This outlook comes after the immediate expertise of MLA, they are key factors that must be considered in a searing hot summer and very poor spring for central, western and northern NSW. the delivery. Assumptions are compiled from a range of sources; each recognised However, in contrast, southern regions of Victoria, SA, Tasmania and WA experts in their respective area. reportedly entered the summer months with an ample feed base for summer. Seasonal conditions in 2014 to be ‘average’ (at best) to ‘below average’ across the The A$ to average lower against the US dollar in 2014, trading between 84-90US¢. majority of Australia’s sheep and lamb producing regions. The expanse of drought After averaging 96US¢ in 2013 (down 7.6% year-on-year), the accepted trend for conditions through 2013, especially for a large portion of NSW, will continue to the A$ is to continue to weaken throughout 2014, assisted by improving economic place a major influence upon the industry throughout the coming year, along with conditions in several overseas markets. the reported spectre of an increased chance of El Nino conditions (associated with drier conditions in eastern Australia). Overall global economic conditions to again improve in 2014, assisted by continuing recoveries in the advanced economies of the US, Japan and EU, along with the sustained performance in China and South East Asia. Figure 1 Australian rainfall 1 Jan 2013 to 31 Dec 2013 Figure 2 Australian rainfall outlook - February to April 2014 Figure 3 A$ against US$ Chance of exceeding the median rainfall Legend Legend Highest on record Very much above average Above average Average Below average Very much below average Lowest on record Above 60% chance 55-60% chance 50-55% chance 45-50% chance 40-45% chance Below 40% chance 1.2 A$/US$ 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 00 01 Source: RBA Source: Australian Bureau of Meteorology 4 Source: Australian Bureau of Meteorology MLA’s Market Information Service – Australian sheep industry projections 2014 02 03 04 05 06 07 08 09 10 11 12 13 14 Situation and outlook 2014–2018 Table 1 Situation and outlook for the Australian sheepmeat industry 2009 2010 2011 2012 2013 % change 2014 f % change 2015 f 2016 f 2017 f 2018 f % change 2018 f on 2013 Sheep & lamb numbers ('000 head) at June 30 72,740 70,085 73,099 74,700 74,200 72,000 72,350 72,750 73,500 74,250 percentage change -5.8% -3.6% 4.3% 2.2% -0.7% -3.0% 0.5% 0.6% 1.0% 1.0% 0.1% Slaughterings ('000 head) sheep 9,411 6,159 4,933 6,063 9,537 57.3% 6,100 -36.0% 7,000 7,150 7,250 7,350 -22.9% lamb 20,493 18,609 17,793 20,009 21,900 9.4% 20,950 -4.3% 20,000 20,200 20,300 20,500 -6.4% sheep 21.2 22.6 23.2 23.1 22.4 -2.7% 22.5 0.3% 22.5 22.5 22.5 22.5 0.3% lamb 20.7 21.6 22.1 22.2 21.0 -5.6% 21.0 0.0% 21.3 21.4 21.5 21.6 2.8% Avg carcase weight (kg) Production ('000 tonnes carcase weight) mutton 200 139 114 140 214 53.1% 137 -35.9% 158 161 163 165 -22.7% lamb 424 402 393 445 460 3.3% 440 -4.3% 426 432 436 443 -3.7% 3,568 2,969 2,458 2,279 1,880 -17.5% 2,300 22.3% 2,600 2,800 2,900 3,000 59.6% Sheep exports ('000 head) Exports ('000 tonnes)* mutton lamb shipped weight 134 99 82 107 172 61.2% 110 -36.0% 126 128 130 132 -23.3% carcase weight 171 126 108 134 206 53.5% 132 -35.9% 151 154 156 158 -23.1% shipped weight 165 156 160 189 214 13.3% 211 -1.3% 205 211 215 219 2.5% 193 221 250 12.8% 247 -1.0% 241 248 253 257 3.0% carcase weight 195 186 Domestic utilisation ('000 tonnes carcase weight) mutton 29 13 6 6 8 43.1% 5 -33.9% 6 7 7 7 -12.2% kg/capita 1.3 0.6 0.3 0.2 0.3 40.2% 0.2 -35.1% 0.3 0.3 0.3 0.3 -19.7% lamb 225 215 200 224 210 -6.1% 193 -8.3% 185 184 184 185 -11.7% kg/capita 10.3 9.7 9.0 9.9 9.1 -8.0% 8.2 -10.0% 7.7 7.5 7.4 7.3 -19.3% Source: ABS, DA, MLA forecasts * excl. canned/miscellaneous f = forecast (in italics) e = estimates MLA’s Market Information Service – Australian sheep industry projections 2014 5 Australian sheep flock As at June 2014, the Australian sheep flock is forecast to be around 72 million head – a 3% decline from 12 months previous. conception rates than the previous two years, with many ewes not reaching joining condition. However, better conditions in southern regions of Australia, coupled The most significant variable to underpin the estimated flock decline in 2013-14 with mild temperatures through autumn and winter, saw pastures and crops was the large drought-induced sheep and lamb turnoff throughout 2013 – perform much better than expected in 2013. Resulting from greater feed especially in NSW. The 2013 calendar year saw the largest lamb slaughter on availability, survival and spring marking rates were higher than expected, enabling record combine with the largest sheep slaughter since 2008. However, the degree ample lamb supplies for late 2013 and early 2014. of the decline is expected to be somewhat softened by the turnoff of a large number of older ewes retained over the past couple of seasons – which contributed to the flock rise throughout 2011 and 2012. Hot and dry conditions prior to 2013 joining reportedly resulted in lower Producer flock intention information collected in the MLA and AWI wool and sheepmeat survey (October 2010 to October 2013) clearly illustrate producer intentions to increase flocks in 2010-11 and 2011-12. In contrast, the return to Historically, the size of the Australian sheep flock has been very reactive to drier conditions in mid-2012, across most sheep growing regions saw producer seasonal conditions, with a clear trend of declining numbers in dry periods and intentions change dramatically, with many producers intending to decrease flocks. flock growth during wetter periods. After recording the lowest sheep population in over a century in 2010 (70.1 million head), on the back of a lengthy dry spell since Through to 2018, the sheep flock is forecast to increase gradually, based on the 2005, the Australian sheep flock grew to 74.7 million head, as at 30 June 2012, assumption of "average" seasonal conditions from 2014 onwards. By June 2018 following back-to-back wet years in 2010 and 2011. the Australian sheep flock is forecast to reach 74.25 million head, expanding each year from a low of 72 million in 2014. Figure 5 Figure 4 Australian sheep flock 200 million head 50 Australian sheep flock by state million head Queensland NSW Victoria SA WA Tasmania 40 150 30 100 20 50 10 0 0 91 93 95 97 98 01 03 05 07 09 11 13e 15f 17f 96 Source: ABS, MLA forecasts 6 97 98 99 00 01 02 03 04 05 As at 30 June, as at 31 March up until 1999 31 March until 1999, 30 June from 2000 e = estimate, f = forecast MLA’s Market Information Service – Australian sheep industry projections 2014 Source: ABS 06 07 08 09 10 11 12 MLA and AWI wool and sheepmeat survey Figure 6 Ewe flock size intentions increase Survey results maintain decrease 100% 80% Surveys are performed tri-annually, in February, June and October and attract an average of 2,000 responses per survey. 60% There is strong representation from all states and from both Merino and non-Merino flocks. 20% 40% 0% Survey results highlight current flock numbers and future supply intentions. The total number of lambs on hand, as at October Oct-11 The total number of lambs marked in the four months to October 2013 increased 6% on the same corresponding period last year, underpinned by 7% period last year, with the number of non-Merino and 60% declines in the number of Merino and dual lambs up 12% (marking rate 107%) and Merino 30 purpose breeds, respectively. Second cross and lambs firm year-on-year (marking rate 87%). 25 shedding breeds performed well in 2013, slightly Underpinning the increase was a rise in overall offsetting the large decrease in Merinos and dual joining and lambing rates in NSW and SA. However, purpose breeds. anecdotal evidence highlights a large variance in 5 marking rates between northern and southern 0 October 2013 (November to February) were expected to decline, with both Merino and nonMerino sales down 3% year-on-year. Furthermore, Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Figure 7 Lambs on hand and expected lamb sales - Australia 2013 was 3%, or 1 million head lower than the Intended lamb sales in the four months following Feb 12 Source: MLA and AWI sheepmeat and wool surveys Merino First cross Dual purpose Shedding Second cross, pure meat, other Expected sales Merino Expected sales all others 35 million head % of lambs on hand expected to be sold 80 20 60 15 40 10 20 0 October 2011 February 2012 June 2012 October 2012 February 2013 regions of both states. Source: MLA and AWI sheepmeat and wool surveys On the back of 'above-average' rainfall in southern Figure 8 Marking rates - Australia regions of Australia throughout winter, ewe flock 100 30 June 2013 October 2013 marking % million head Ewes joined Lambs marked 120 Marking rate (RHS) anecdotal evidence suggested that the southern intentions for 2014 were positive, with 30% of 25 100 Victoria and SA season was running four to six producers intending to increase ewe flocks, 5% 20 80 weeks behind last year, and that heavy lambs were higher than the same period last year. Furthermore, 15 60 likely be sold later, whereas in northern Victoria, 5% less producers are intending to decrease ewe 10 40 NSW and WA supply was expected to peak in flocks in 2014, with around 55% looking to maintain 5 20 December and January. current populations. 0 0 October 2011 February 2012 June 2012 October 2012 February 2013 June 2013 October 2013 Source: MLA and AWI sheepmeat and wool surveys MLA’s Market Information Service – Australian sheep industry projections 2014 7 Lamb slaughter Australian lamb slaughter for 2014 is forecast to decline 4.3% year-on-year, to 20.95 million head, as coupled with further deteriorating northern regions, a return to dry conditions in the spring of 2013 will will likely see the surge of lambs to slaughter likely see the large turnoff of light weight lambs in continue throughout the first quarter of 2014. The the last quarter of 2013 continue into the first ability of producers to finish lambs to heavier quarter of 2014. weights is expected to be varied across regions – a year-on-year, and more than 3% higher than the million head 25 20 15 10 5 months. previous record set in 1972. 0 91 Considering the current seasonal conditions during 93 95 97 99 01 03 05 07 09 11 13e 15f 17f e = estimate, f = forecast Source: ABS, MLA forecasts joining and the large estimated sheep and lamb turnoff in 2013-14, it is forecast lamb supply will Widespread rainfall, combined with mild tighten significantly in 2015, on the back of a lower temperatures in winter and spring in SA, southern Victoria and WA, boosted lamb survival and marking rates, with ample feed available. In contrast, NSW and Queensland experienced an extremely dry Figure 9 Australian lamb slaughter reflection of the mixed rainfall during the past 12 Total lamb slaughter in 2013 is estimated to be the highest on record, at 21.9 million head, up 9.4% The onset of dry conditions in southern regions, Figure 10 Monthly Australian lamb slaughter breeding ewe flock and lower conception rates in 2200 2014. 2000 '000 head 2011 2012 2013 1800 Through to 2018, Australian lamb slaughter is spring, seeing lambs offered at light weights in late forecast to increase gradually, based on the 2013 and early 2014. assumption of an improvement in marking rates from 2015 onwards (albeit an improvement from an expected low 2014) and the assumption of "average" seasonal conditions. By 2018, lamb 1600 1400 1200 1000 J F M A M J J A S O N D Source: ABS slaughter is expected to climb back to 20.5 million head – still 6.4% below the record 2013 levels. Figure 11 Quarterly lamb slaughter and saleyard prices 7 million head lamb slaughter A¢/kg cwt 700 average trade lamb price 6 600 5 500 4 400 3 300 2 200 1 100 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e Source: ABS, MLA forecasts, MLA’s NLRS 8 MLA’s Market Information Service – Australian sheep industry projections 2014 e = estimate Mutton slaughter In the wake of an estimated 9.54 million head slaughter in 2013, the result of a drought-induced surge in mutton turnoff levels and the largest adult sheep slaughter since 2008, Australian adult sheep slaughter for 2014 is forecast to decline 36% year-on-year, to 6.10 million head. Although the total adult sheep slaughter was up significantly in 2013, in relative terms, it is assumed that the greater numbers turned off consisted of older ewes that were held back during the wet years from 2010 to 2012. The return to dry conditions at the beginning of 2013 was the catalyst for producers to actively reduce the older ewe flocks, as they retained younger breeding ewes built up through the previous wet years. In the wake of a widespread winter break, a hot and dry spring and summer period, especially in NSW, stimulated further sheep turnoff, with poor feed and water conditions in western and northern parts of the state reducing the number of ewes expected to be joined in 2014. Through to 2018, Australian adult sheep slaughter is forecast to increase gradually, in line with an increase in lamb turnoff, based on the assumption of an improvement in marking rates from 2015 onwards, on the back of an assumed return to "average" seasonal conditions. By 2018, adult sheep slaughter is forecast to reach 7.35 million head, still 22.9% below the huge drought driven 2013 slaughter level. Figure 12 Australian sheep slaughter 20 Figure 13 Australian monthly sheep slaughter million head 1000 Figure 14 Quarterly sheep slaughter and saleyard prices '000 head 2011 2012 2013 5 800 15 million head sheep slaughter A¢/kg cwt 500 average sheep price 4 400 3 300 2 200 1 100 600 10 400 5 200 0 0 91 93 95 97 Source: ABS, MLA forecasts 99 01 03 05 07 09 11 13e 15f 17f e = estimate, f = forecast J Source: ABS F M A M J J A S O N D 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e Source: ABS, MLA forecasts, MLA’s NLRS MLA’s Market Information Service – Australian sheep industry projections 2014 9 Lamb and mutton production and carcase weights Australian lamb production is forecast to contract 4.3% in 2014, to around 440,000 tonnes cwt, tonnes cwt in 2014, down 77,000 tonnes, or 33% underpinned by a large reduction in slaughter, after on an estimated 214,000 tonnes cwt in 2013 (the record levels in 2013. highest since 2008). Similar to lamb, the contraction in Victoria and NSW, will likely see carcase weights remain firm year-on-year, at 21.0kg/head cwt. Disregarding the historically large average lamb Figure 15 Australian lamb production 500 '000 tonnes cwt production kg/head 25 carcase weight 400 23 300 21 by a likely large reduction in slaughter, slightly offset 200 19 by an expected small increase in carcase weights. 100 17 of mutton production forecast for 2014 is supported Growing demand for smaller cuts from international markets, combined with widespread dry conditions Likewise, mutton production is forecast at 137,000 Mutton carcase weights are forecast to average 0 15 91 22.5kg/head in 2014, up 0.1kg on 2013. 93 95 97 99 01 03 05 07 09 11 13e 15f 17f e = estimate, f = forecast Source: ABS, MLA forecasts carcase weights recorded in 2011 and 2012, where the wet years supported weight gains, the average annual carcase weights beyond 2014 are forecast to Figure 16 Mutton production and carcase weight 500 '000 tonnes cwt production continue the upward trend since 1986, on the back kg/head 25 carcase weight 400 23 300 21 specialised meat breeds. This growth is forecast to 200 19 continue reaching 21.6kg/head in 2018, a 3% 100 17 of improvements in feed efficiency, husbandry practices, genetics and the proliferation of increase on 2013. 15 91 For 2013, Australian lamb production outstripped the previous record in 2012 by 3.3%, or 15,000 tonnes, at an estimated 460,000 tonnes cwt. This was the result of a sharp jump in slaughter, which was lessened by lower than average carcase weights – driven by drought conditions in NSW. 10 0 MLA’s Market Information Service – Australian sheep industry projections 2014 93 95 97 Source: ABS, MLA forecasts 99 01 03 05 07 09 11 13e 15f 17f e = estimate, f = forecast Sheep farm income The Australian Bureau of Agricultural and Resource Economics and Sciences In contrast, crops were reportedly estimated to make up 54% of total cash receipts of slaughter lamb producing businesses (650 ha sown to crop), at producing farms. The full report can be found at: http : //www . daff.gov.au/ $303,000 per farm in 2012-13 – an increase of 5% on 2011-12. Along with lamb, ABARES/pages/publications/display.aspx?url=http : //143.188.17.20/anrdl/ beef cattle and wool sales were also forecast to finish 2012-13 below 2011-12 DAFFService display.php?fid=pb_alfpfd9aabf00320130626_11a.xml levels, at $52,000 per farm and $68,000 per farm, respectively. According to 2012-13 results, average total farm cash income for slaughter lamb However, the estimated tighter supply as 2014 progresses, on the back of poor producing farms in 2012-13 was estimated to have declined by 19%, to $139,000 marking percentages in late 2013, will likely have a large impact on slaughter per farm. Although down considerably on 2011-12, the result for 2012-13 is still lamb farm incomes over the medium term. estimated to be 13% above the 10-year average. The results clearly highlight the impact of lower prices and tougher seasonal conditions during 2012-13. (ABARES) reports annually on the financial performance of slaughter lamb National average saleyard lamb prices for the first six months of the 2013-14 fiscal year were higher than the same period in 2012-13 across all categories, For 2012-13, the increased number of lambs sold was more than offset by the with the trade lamb indicator up 14% year-on-year, averaging 430¢/kg cwt. While decrease in average lamb prices. The average slaughter lamb price was estimated average lamb prices are anticipated to improve during 2014, the ability for lambs to be 25% lower, on the back of increased supply at lighter finishing weights. As a to meet market specifications, especially in NSW given the very dry conditions, result, average receipts from lamb sales were estimated to have declined by 22% will ultimately determine average farm incomes in 2013-14. on the previous year, to $80,000 per farm. Lower prices also offset a larger number of adult sheep sold in 2012-13, with adult sheep receipts per-farm averaging $26,000 – down 34% on 2011-12. Figure 17 Australian slaughter lamb farm income $'000 (2012-13 dollars) 200 2012-13 Average Slaughter Lamb Farm Incomes farm cash income farm business profit 150 Small (200-500 head sold) – down 20%, to $85,000 per farm 100 50 Medium (500-1000 head sold) – down 25%, to $126,000 per farm 0 Large (1000-2000 head sold) – up 1%, to $230,000 per farm -50 -100 90-91 92-93 Source: ABARES 94-95 96-97 98-99 00-01 02-03 financial year 04-05 06-07 08-09 10-11 12-13e Very Large (more than 2000 head sold) – down 28%, to $338,000 per farm e = estimate MLA’s Market Information Service – Australian sheep industry projections 2014 11 2014 demand outlook The 2014 demand outlook for Australian lamb industry looks bright – a combination of the lower A$, robust demand from major markets and much tighter supplies out of New Zealand (Australia’s main competition in the 250 global sheepmeat trade) 200 After surging to a record calendar year volume in 2013, at 213,714 tonnes swt, total Australian lamb exports for 150 2014 are forecast to decline 1.5%, to 211,000 tonnes swt. 100 The 1.5% decline for 2014, however, is solely based upon the expectation of a decline in available supplies – compared to the record production and slaughter volumes registered in 2013. However, as a percentage of production, exports will increase to 56.1%, up from 38.5% a decade earlier. 12 Figure 18 Australian lamb exports MLA’s Market Information Service – Australian sheep industry projections 2014 '000 tonnes swt 50 0 95 97 99 01 Source: ABS, MLA forecasts 03 05 07 09 11 13 15f 17f f = forecast 2014 lamb demand outlook Table 2 Australian exports of lamb ('000 tonnes shipped weight) 2009 2010 2011 2012 2013 % change 2014 f % change f 46.5 39.5 39.4 42.1 45.6 8% 48.5 6% 38.3 34.1 34.3 36.7 39.2 7% 42.0 7% To: North America US - Canada 5.1 3.7 3.9 4.7 5.6 19% 6.0 8% - Mexico 3.1 1.8 1.2 0.8 0.8 6% 0.5 -40% Middle East 35.9 36.7 34.9 51.8 59.8 15% 61.0 2% Greater China 25.7 25.8 29.6 34.6 48.9 41% 51.0 4% - China 13.9 15.7 21.2 29.5 39.5 34% 43.3 10% - Hong Kong 10.4 8.1 6.2 3.5 7.5 116% 6.5 -14% - Taiwan 1.4 2.0 2.1 1.6 1.8 14% 1.2 -35% South East Asia 7.0 9.3 9.6 9.7 11.5 19% 10.0 -13% Japan 8.3 7.7 7.4 7.7 7.7 0% 7.5 -3% South Korea 1.2 2.1 2.7 3.0 3.2 6% 3.0 -6% EU 13.7 12.0 13.0 12.1 11.7 -3% 12.0 2% Other Europe 3.3 3.7 3.5 3.5 3.1 -13% 3.0 -3% Pacific 11.2 9.5 10.9 14.0 13.3 -5% 8.0 -40% South Africa 2.9 3.0 3.2 2.0 1.8 -9% 1.5 -15% Other Africa/Mauritius 6.5 4.0 3.4 5.7 4.4 -23% 3.0 -31% Other 2.8 2.3 2.6 2.4 2.8 15% 2.5 -11% Total 165.0 155.5 160.0 188.6 213.7 13% 211 -1% Source: DA, MLA forecasts f = forecasts (indicated in italics) Pacific = PNG, New Zealand & Pacific Islands Other Europe = CIS, Eastern Europe and Western Europe other than EU South East Asia = Indonesia, Singapore, Philippines, Malaysia, Thailand and Vietnam MLA’s Market Information Service – Australian sheep industry projections 2014 13 2014 mutton demand outlook Table 3 Australian exports of mutton ('000 tonnes shipped weight) 2009 2010 2011 2012 2013 % change 2014 f % change Middle East 51.9 42.9 39.5 46.7 40.9 -12% 34.1 -17% Greater China 17.2 11.7 9.2 22.1 71.2 222% 51.0 -28% 8.5 6.7 5.1 16.4 57.9 254% 47.0 -19% -85% To: - China - Hong Kong 1.0 0.8 0.5 0.9 6.6 631% 1.0 - Taiwan 7.7 4.2 3.6 4.9 6.6 36% 3.0 -55% 14.6 12.6 9.1 11.8 22.2 89% 6.5 -71% Japan 5.6 3.8 4.5 3.2 3.8 20% 3.0 -21% South Korea 0.7 1.0 1.0 1.0 1.0 4% 1.0 -4% 17.9 11.7 6.1 8.1 12.2 51% 6.4 -48% South East Asia North America 10.8 8.7 4.5 7.5 8.7 17% 6.0 -31% - Mexico 4.2 1.0 0.2 0.4 2.9 618% 0.2 -93% - Other North America 3.0 2.0 1.3 1.3 0.6 -56% 0.2 -64% EU 5.4 4.9 3.5 3.7 5.0 34% 3.3 -34% Other Europe 5.5 4.5 3.2 4.5 4.7 4% 2.0 -57% Pacific 5.5 1.6 2.0 1.0 2.5 153% 1.0 -60% South Africa 4.4 1.6 1.9 1.3 1.2 -4% 0.3 -75% Other Africa/Mauritius 4.2 2.2 1.6 1.6 4.8 192% 0.8 -83% Other 1.0 0.5 0.6 1.8 2.6 46% 0.6 -77% Total 134.0 99.1 82.2 106.7 172.0 61% 110.0 -36% - US Source: DA, MLA forecasts Pacific = PNG, New Zealand & Pacific Islands Other North America = Canada and the Caribbean North Asia = Japan, Korea, Taiwan, China and Hong Kong Other Europe = CIS, Eastern Europe and Western Europe other than EU South East Asia = Indonesia, Singapore, Philippines, Malaysia, Thailand and Vietnam 14 MLA’s Market Information Service – Australian sheep industry projections 2014 f = forecasts (indicated in italics) New Zealand The New Zealand (NZ) sheepmeat industry is Export lamb slaughter for 2013-14 (October to Beef + Lamb NZ also reported that mutton slaughter heavily dependent on export markets, with over September) is forecast to decrease by nearly 11% is estimated to fall nearly 6% year-on-year, to 3.9 90% of production exported each year. Since a to 18.6 million head, the lowest lamb slaughter in million head, after high export slaughter in 2012-13. peak in the mid-1980’s, the NZ sheep flock has decades, on the back of lower marking Interestingly, this reflects unchanged sheep been steadily declining, with numbers estimated to percentages. However, solid rainfall and higher than numbers rather than the rebuilding of the national have been 30.94 million head as at 30 June 2013, average temperatures throughout winter assisted ewe flock, based on the relative profitability of down around 1% year-on-year – the smallest in pasture growth and supported post-marking alternative agricultural enterprises competing for recent history (Statistics NZ). survival rates. Furthermore, good growing land. At the mid exchange rate of US$ to NZ$ 0.79, conditions and high feed availability are likely to see the average annual mutton price is likely to increase average carcase weights increase 2% in 2013-14, 9% year-on-year, to $67/head – driven by tighter to 18.4kg, minimising the impact of a smaller lamb supply in 2013-14. According to Beef + Lamb NZ’s New Season Outlook 2013-14, the spring 2013 lamb crop is estimated to be down around 8%, or 2.1 million head. This reflects the severity of the widespread drought in summer and autumn 2012-13, which resulted in fewer ewes joined, with a large portion of crop. As a result, export lamb production is forecast to decrease 9% year-on-year, to around 342,000 In 2013-14, total lamb exports are forecast to decrease by around 9% on the previous year, to tonnes cwt. approximately 285,000 tonnes swt. Export receipts hoggets not mated due to poor condition during the under the mid exchange rate (1 NZ$=US$0.79) are peak joining period in summer. estimated to remain firm on 2012-13, at $2.56 billion, as a significant reduction in supply is offset Key factors by a forecast 10% improvement in export value. around $8,000/tonne. Drought conditions in 2012-13 have led to the smallest lamb crop in almost 60 years. Figure 19 NZ lamb exports 60 % change in exports 2013 v 2012 600 89,558 tonnes swt 40 20 Figure 20 Sheepmeat export volume Aus v NZ 307,918 tonnes swt 123,344 tonnes swt 18,181 tonnes swt 0 Forecast for tight supplies in 2013-14 to see total exports back 9% year-on-year. 25,240 tonnes swt -20 -40 total Source: Beef + Lamb NZ EU China Middle East Shipments to the Middle East decline as China and the EU continue to increase demand. US figures represent 2013 total Export receipts to remain firm in 201314, due to 10% growth in lamb export value. '000 tonnes cwe Australia New Zealand 550 500 450 400 350 300 2000 2004 2008 2012 2016 2020 Source: FAO-OECD MLA’s Market Information Service – Australian sheep industry projections 2014 15 Sheep flock 72 million head Australia (as at 30 June, 2014) Annual lamb consumption 2013 9.1kg/capita Annual lamb production 2013 460,000 tonnes cwt 16 MLA’s Market Information Service – Australian sheep industry projections 2014 Australian domestic lamb consumption to decrease 8.3% year-on-year, to 193,000 tonnes cwt Export lamb to increase market share of production to 56% due to strong international demand Domestic food service growth to remain firm Australian market Australian market Australian economy Consumer trends Lamb consumed in the Australian market is stable, and better placed than many other world and volatile to the global economic environment, 193,000 tonnes cwt, following the 6.1% annual fall economies, despite the economy growing below trend changes in the level of mining investment and the registered in 2013 (210,000 tonnes cwt). in the past year. political landscape. Despite lamb’s niche position in the Australian Inflation in Australia continues to remain relatively On the whole, consumer confidence in 2013 was market and consumer resilience in this segment of low, with the consumer price index (CPI) only rising above 2012 levels, and finished December on 116.3 the market in recent years, the major challenge for 2.4% on the June quarter 2012 and 2.2% on the points, lower than the confidence registered the Australian lamb market in 2014 and beyond is September quarter 2012 (latest available). between September and November by 4-5 forecast to take 56% of Australian lamb production increasing pressure on key world lamb exporters market. Roy Morgan noted that consumer confidence ended 2013 on a low note, with unemployment rising. 104US¢ in April, and 105US¢ in January 2013. middle income population, will continue to place and lift the competition for lamb in the Australian for the month as at January 2014), coming off by a lower A$ and expanding global demand. Increasing population growth, along with a growing percentage points. In the past year, (since January 2013), the A$ has depreciated 14% and is currently at 89US¢ (average in 2014 (this compares with 46% in 2010) – fuelled Australian consumer confidence remains sensitive expected to fall 8.3% year-on-year in 2014, to the expected continued growth in export markets, Australia’s economic health remains resilient and Consumer confidence started 2014 on 116.4 points, In 2014, the A$ (see page 4) is expected to trade but remains lower than the 118.3 points registered between 84-90US¢ – again providing a huge boost the same week in 2013. to export demand. Australia’s population is currently expanding at an annual rate of 1.8%. These anticipated market trends will be further exacerbated in 2014, as a result of the expected 4.3% fall in Australian lamb production. Figure 22 Mutton exports and domestic utilisation Figure 21 Domestic lamb utilisation 300 '000 tonnes cwt 400 '000 tonnes cwt export domestic utilisation 350 250 300 200 250 150 200 100 150 100 50 50 0 0 91 93 95 97 99 Source: ABS, ABARES, MLA forecasts 01 03 05 07 09 11 13e 15f 17f e = estimate, f = forecast 95 97 99 01 Source: DA, ABS, MLA forecasts 03 05 07 09 11 13e 15f 17f e = estimate, f = forecast MLA’s Market Information Service – Australian sheep industry projections 2014 17 Australian market Retail prices Average retail lamb prices have retreated slightly since the June quarter 2012. Lamb prices hit a high point in the June quarter 2011 at $14.99/kg. Following this they started to fall, but also fluctuated, before a clear downward trend was noted since June 2012, which continued into 2013. This trend is not surprising given the lower livestock prices throughout the year, the challenging consumer market and price competition among retailers in recent years. As a result, retail lamb prices averaged $12.54/kg in the first three quarters of 2013, much lower than prices over the same period in 2012 ($14.20/kg) and 2011 ($14.73/kg). Retail value and volume trends In line with the falling prices, over the calendar year to November, AC Nielsen Homescan data suggests that the total fresh lamb retail value edged up 0.5% compared with the same period in 2012, while total volumes increased 7.1%. As lamb is considered to be more of a luxury item, the fall in prices throughout the year has meant that more consumers were able to purchase more of the product. Figure 23 Australian retail meat prices* 1800 A¢/kg retail weight beef lamb chicken pork 1600 1400 1200 1000 800 600 400 2000 Source: ABS 18 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 * = subject to revision MLA’s Market Information Service – Australian sheep industry projections 2014 Australian market Foodservice trends Factors generally contributing to the weaker among foodservice operators (based on a 100 point Foodservice growth in the Australian market is uncertainty in the Australian and global economy, score) in October improved on June estimates for expected to remain flat in 2014. particularly the political uncertainty prior to the restaurants, hotels/motels, clubs/pubs, and quick BIS Foodservice, in their October report noted that election and the decline in mining investment. service restaurants, but was lower for cafes, and households were spending significantly less than Therefore, despite the rate cuts, economic growth caterers. The confidence score was highest for what was forecast just six months previously, with weakened throughout the year. Further noted, was quick service restaurant chains (87 points), catering expenditure contracting. the weaker employment, wage and income growth restaurants (80 points) and clubs/pubs (79 points). throughout the year. BIS Shrapnel also noted that across both the BIS Foodservice also measures how operators These factors have meant that BIS Foodservice’s believe their business will perform in the next six are facing difficulties in dealing with increased costs economic forecasts were revised down to 2.3% for months. According to the October results, the across the board; utilities, insurance, labour, and GDP in 2013-14, and 2.4% growth for household strongest confidence was among quick service rent. consumption expenditure over the same period restaurant chains, followed by hotels/motels. (down from a forecast of 2.7% growth in their June Confidence was lowest among quick service report). independents and caterers. commercial and institutional sectors, all channels Figure 24 Restaurants, cafes and takeaway turnover cycle Domestic market performance – past 20 years Figure 25 Australian retail fresh meat s hares All shoppers purchase value % change 14.0 All shoppers purchase volume 12.3 12.0 8.8 9.2 9.5 8.6 Beef 36.8% 8.0 Beef 37.5% 6.7 6.6 4.0 3.6 2.7 2.0 0.0 0.3 -1.0 -2.0 01 02 03 04 Source: ABS, 8501.0 ‘original series’ 05 06 07 08 09 10 11 Lamb 13.4% other 1.5% 1.1 00 Chicken 32.4% Chicken 26.6% 10.2 10.5 10.0 6.0 Interestingly, despite the above trends, confidence performance in 2013 include the continued 12 13* * = January to November Pork 10.2% Source: AC Nielsen scan data Veal 1.2% Turkey 1.1% Seafood 9.3% Lamb 12.1% Veal 0.8% other 1.5% Pork 9.8% Turkey 1.2% Seafood 4.7% Australian lamb production has increased 78% over the past 20 years, from 258,600 tonnes cwt in 1993 to 460,000 tonnes cwt in 2013. Over the same period, domestic lamb consumption has remained relatively firm, increasing only 1% to 210,000 tonnes cwt, from 80% of total production in 1993, to an estimated 45.7% in 2013. MLA’s Market Information Service – Australian sheep industry projections 2014 19 Middle East Australian lamb exports to reach 61,000 tonnes swt in 2014, up 2% year-on-year Higher lamb shipments to Bahrain Australian 2013 lamb exports to the Middle East: 59,777 tonnes swt Australian 2013 mutton exports to the Middle East: 40,910 tonnes swt Australian 2013 live sheep exports to the Middle East: 1.88 million head 20 MLA’s Market Information Service – Australian sheep industry projections 2014 heavily contributed to the increase in volumes to the region, up from 3,336 tonnes swt in 2012 to 13,351 tonnes swt in 2013 Australian mutton exports to decline to 34,100 tonnes swt in 2014, down 17% year-on-year Middle East Lamb Australian lamb exports to the Middle East are forecast to reach 61,000 tonnes swt in 2014, an increase of 2% on 2013 shipments. Despite a decline in overall region. Demand for Australian carcase lamb drove exports to 13,351 tonnes swt in production for 2014, Australian lamb exports to the Middle East are expected to 2013, up from 3,326 tonnes swt in 2012. maintain their recent growth path, assisted by reduced competition, lower A$ and sustained consumer demand across the region. Shipments to Iran remain sporadic, with 2,755 tonnes swt exported in 2013, down from 7,271 tonnes swt in 2012. Sanctions placed on Iran by the international Australian lamb exports to the Middle East have grown rapidly in recent years, community, currency fluctuations and the reluctance of shipping companies to totalling 59,777 tonnes swt in 2013. In 2008, shipments totalled 25,500 tonnes swt, move product directly to Iran have hindered the trade. with consistent growth in exports since then an indication of the strength of the region as a destination for Australian lamb. Higher lamb exports to Bahrain also contributed to the increase in volumes to the Encouragingly, Kuwait has also emerged as a strong market for Australian lamb exports. Shipments in 2013 totalled 4,150 tonnes swt, growth of 40% year-on- In recent years, there has been consistent growth to Australia’s largest market in year. the region, the United Arab Emirates (UAE). In 2013, 15,724 tonnes swt of Australian lamb was destined for the UAE, growth of 19% year-on-year. Solid The economic outlook for the broader Middle East region is positive; GDP growth is forecast at 3.8% in 2014 and 4.2% in 2015, a positive for lamb consumption. economic growth forecasts for the UAE, of 3.9% in 2014 and 3.8% in 2015, look set to help sustain demand for Australian red meat. Turpis justo, consequat sed viverra quis, viverra eget ante. Pellentesque auctor suscipit tellus, sit amet pulvinar massa semper ut. Donec bibendum tellus vel Figure 26 Lamb exports to the Middle East ullamcorper lobortis. Ut quis augue pulvinar, '000 tonnes swt 70 blandit tellus. 60 Pellentesque auctor suscipit tellus, sit amet pulvinar massa semper ut. Donec bibendum 30 tellus vel ullamcorper lobortis. Ut quis 20 augue pulvinar, blandit tellus. 10 50 40 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA volumes, MLA forecasts f = forecast Figure 27 Lamb exports to the Middle East - by market 18 16 14 12 10 8 6 4 2 0 Figure 28 Lamb exports to the Middle East by cut - 2013 '000 tonnes swt 2012 carcase 73.9% 2013 other 4.0% rack 2.9% an rd Jo Source: DA U AE Q ar at a bi ra iA d u Sa n Ira it wa Ku el ra Is n ai hr Ba r he ot Source: DA leg 8.5% shoulder 7.5% forequarter 3.2% MLA’s Market Information Service – Australian sheep industry projections 2014 21 Middle East Mutton 10,404 tonnes swt of mutton destined for UAE ports. This was a slight decline Australian mutton exports to the Middle East are forecast to reach 34,100 tonnes (6%) year-on-year. swt in 2014, a decrease of 17% on 2013 shipments. The forecast reduction in mutton exports to the region comes as Australian mutton production is anticipated Australian lamb carcase exports to the market has reportedly impacted on mutton demand for mutton. volumes, with lamb carcases (13,301 tonnes swt in 2013) gaining preference over The Middle East is an important market for Australian mutton, with 40,911 tonnes mutton. swt shipped to the region in 2013. This represented 24% of all Australian mutton exports. Illustrating the impact of growing Chinese demand on mutton shipments estimated at 5% in 2013 and forecast to reach 3.4% in 2014, paints a positive Middle East in 2012, representing 44% of all Australian mutton exports. picture for protein demand in the country. Saudi Arabia remained Australia’s largest market for mutton in the region in 2013, with 12,761 tonnes swt. This was a slight increase on 2012 exports (up 1%) and 60 The economic outlook for the broader Middle East region is positive; GDP growth is forecast at 3.8% in 2014 and 4.2% in 2015, helping underlying demand for the highest level of shipments to Saudi Arabia since 2009. Figure 29 Mutton exports to the Middle East Oman emerged as a growing market for Australian mutton in 2013, with shipments up 79% year-on-year, to 5,458 tonnes swt. Strong economic growth in Oman, to the Middle East, 46,710 tonnes swt of Australian mutton was destined for the Bahrain, previously a large market for Australian mutton exports (6,318 tonnes swt in 2012), took next to no Australian mutton (12 tonnes) in 2013. The increase in to drop from highs seen in 2013, and China is expected to maintain its strong The United Arab Emirates (UAE) was Australia’s second largest market, with Australian sheepmeat. Figure 30 Mutton exports to the Middle East - by market '000 tonnes swt 14 '000 tonnes swt 2012 12 50 Figure 31 Mutton exports to the Middle East by cut - 2013 carcase 55.0% 2013 10 40 8 30 6 4 20 0 10 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA volumes, MLA forecasts 22 other 8.6% 2 f = forecast an rd Jo Source: DA U AE Q ar at r iA ud Sa ia ab MLA’s Market Information Service – Australian sheep industry projections 2014 Ira n w Ku t ai n ai hr Ba t yp Eg m O an O er th rack 2.3% leg 21.7% Source: DA shoulder 4.9% manufacturing 7.5% United States Australian lamb exports to the US to increase 7% in 2014, to 42,000 tonnes swt Chilled lamb accounted for 45% of lamb exported from Australia to the US, compared to 30% in 2003 Sheep flock Lamb legs accounted for 31% of Australian lamb exports to the US 5.2 million head Annual sheepmeat consumption 0.4kg/capita (retail weight) Annual sheepmeat production 71,000 tonnes cwe Annual sheepmeat imports 78,000 tonnes cwe MLA’s Market Information Service – Australian sheep industry projections 2014 23 United States Lamb go to the north-east of the country, where per capita 2012, legs increased closer to a more regular lamb consumption is almost double the national grow a further 7% in 2014, to 42,000 tonnes swt, volume over 12,000 tonnes in 2013. In 2013, there average. This is in large part due to the relative which would be the highest calendar year total was also a large increase in what are classified as wealth of the region allowing for greater since 2007. Although total exports are expected to “assorted cuts”, which includes packages of three consumption of lamb – a more expensive protein. be slightly lower, the high value nature of the US or more primals. This is likely to have accounted for market, along with the added advantage of a lower more leg exports in some packages, after growing A$, is likely to help increase its share of total from 4,200 tonnes in 2012 to 8,500 tonnes in 2013. The peak demand periods for lamb in the US are Easter and winter (between Thanksgiving and Christmas), which has the potential to coincide well Rack, shank, shortloin and shoulder exports with Australia’s peak supply periods in autumn and Much of the export growth in 2014 is expected to account for the majority of other lamb exports to the spring. come in the form of chilled product, which would US, all of which were around 4,000 tonnes in 2013. continue the long term trend. In 2013, chilled lamb There was a large drop, however, in shoulder accounted for 45% of all Australian lamb shipped to exports – largely due to the increased popularity in the US, compared with 30% in 2003. China. Figure 33 Lamb exports to the US by cut - 2013 '000 tonnes swt assorted primals 21.7% leg 31.3% 40 Figure 34 Mutton exports to the US 25 '000 tonnes swt 20 30 15 other 0.6% manufacturing 1.7% 20 10 shoulder 10.3% rack 10.2% 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA volumes, MLA forecasts 24 Most of the high value lamb cuts exported to the US Australian lamb exports to the US are forecast to Figure 32 Lamb exports to the US 50 largest volume export cut to the US – after a dip in exports. Legs should easily maintain their position as the f = forecast Source: DA shank 10.5% MLA’s Market Information Service – Australian sheep industry projections 2014 shortloin 9.5% carcase 4.1% 10 5 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA volumes, MLA forecasts f = forecast Sheep flock China 282 million head Annual sheepmeat consumption 3kg/capita Annual sheepmeat production 4.1 million tonnes cwe The development of the Chinese market as a major destination for Australian sheepmeat in 2013 was very welcome for the Australian sheep industry, helping to consume the large increased supply out of Australia. Food safety is a major issue for Chinese consumers, and Australia’s strong food safety regulations and the ‘clean & green’ image have helped boost exports to China in recent years. MLA’s Market Information Service – Australian sheep industry projections 2014 25 China Lamb China’s proportion of Australia’s lamb exports is expected to increase further in While NZ lamb has a strong presence in China (with its market share at 54% in 2014, with total volumes forecast to increase 10% on the record 2013 volume, to 2013), Australia has maintained its market share at over 40% since 2008 (at 43% 43,300 tonnes swt. Robust demand and subsequent high sheepmeat prices in the in 2013). Although the existing NZ-China Free Trade Agreement places Australia at Chinese market are expected to continue throughout 2014, attracting additional a competitive disadvantage, the impact of the NZ’s tariff advantage is expected to volumes of Australian product. be subtle in 2014, due to NZ’s anticipated lower production. Australian lamb exports to China during 2013 reached new heights, at 39,535 In 2013, the most popular cut shipped to China remained breast and flap tonnes swt, assisted by rising demand and Australia’s higher production. The (traditionally high demand particularly for hot pots) at 20,331 tonnes swt, record annual volume represented 18% of Australia’s total lamb exports in 2013. accounting for 51% of Australian lamb exported to China during 2013. Reflecting China’s GDP growth is forecast to slow down in the lead up to 2018 – from 7.7% in 2013 to 6.1% in 2018 (IMA Asia). Although China’s population is expected to China’s strict control over food safety, manufacturing lamb exports were down slightly (1% year-on-year), at 5,885 tonnes swt. In contrast, shoulder and carcase exports surged to 6,701 tonnes swt (up 261% year-on-year) and 2,589 tonnes swt continue growing, reduced growth in working-age population will have a dampening impact on the GDP. However, the fundamentals will remain relatively (from only 81 tonnes swt in 2012 - up 3,094%), respectively. strong in comparison to major global economies. In addition, ongoing urbanisation and changes in diet, along with rapid growth of online retailers are expected to contribute to sustained demand from China for Australian lamb. Figure 35 Lamb exports to China Figure 36 Lamb exports to China by cut - 2013 '000 tonnes swt breast & flap 51.4% 50 other 3.2% carcase 6.5% 40 30 neck 7.0% 20 10 manufacturing 14.9% 0 95 96 97 98 99 Source: DA volumes, MLA forecasts 26 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f f = forecast MLA’s Market Information Service – Australian sheep industry projections 2014 Source: DA shoulder 16.9% China Mutton In line with the forecast reduction in Australia’s The top three cuts (carcase, breast & flap and leg) mutton production in 2014, exports to China for the exported to China during 2013 accounted for 86% year are forecast to be down 19% year-on-year, to of total shipments. The cut in the highest demand 47,000 tonnes swt. China was placed as the largest was carcase, at 27,026 tonnes swt (from 2,359 export destination for Australian mutton in 2013, at tonnes swt in 2012). Increased demand for mutton a record 57,888 tonnes swt – or 34% of Australia’s (along with lamb and beef) carcase was related to total mutton exports in 2013. the declining national local flock, driven by an China’s intake of NZ mutton during 2013 also attempt reduce costs and get local processors to climbed 192% year-on-year, to 49,332 tonnes swt. process the carcase. Following carcase were breast In addition to the strong fundamentals, a shortage of lamb in the Chinese market has reportedly driven increased demand for imported mutton. A lack of sheepmeat supply in the Chinese market has also & flap and leg, at 16,276 tonnes swt (up 87% yearon-year) and 6,390 tonnes swt (up 267%), respectively. Shoulder exports also jumped 339%, to 3,391 tonnes swt. caused a surge of market prices. The 2013 average bone-in sheepmeat retail price reached RMB62.33/ kg (A$10.55), up 20% on 2012 and 115% higher than the ten-year average. Figure 38 Mutton exports to China by cut - 2013 Figure 37 Mutton exports to China 50 breast & flap 28.1% '000 tonnes swt 40 shoulder 5.9% other 4.9% 30 manufacturing 3.4% 20 leg 11.0% 10 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA volumes, MLA forecasts f = forecast Source: DA carcase 46.7% MLA’s Market Information Service – Australian sheep industry projections 2014 27 European Union Australian lamb exports to the EU are forecast to A surge of New Zealand (NZ) exports onto the market Economic conditions in the EU are forecast to reach 12,000 tonnes swt in 2014, up 2% on the in the first half of 2013, a result of drought in NZ, improve in 2014. The UK, with GDP growth of 1.4% previous year. Australian sheepmeat exports to the contributed to a tough operating environment for in 2013, is forecast to grow at 1.9% in 2014. EU are constrained by a small country specific Australian sheepmeat exporters. With a tightening in Although only a moderate strengthening in growth, quota allocation, of 19,186 tonnes cwe. This, NZ supply as 2013 progressed, Australian lamb was this compares with 0.2% in 2012, where the UK combined with tough economic conditions in the able to flow to the market at higher prices. NZ, with narrowly avoided recession. EU, has defined the operating environment for quota access of 228,254 tonnes cwe, dominates Australian sheepmeat in the EU in recent years. imported lamb market share throughout the EU. A forecast decline in sheepmeat production in the EU, combined with largely stagnant imports, is set Encouragingly, NZ supplies are anticipated to to impact negatively on sheepmeat consumption in down 3% year-on-year. Despite the reduction in remain relatively tight in 2014. This, combined with coming years. From 2012 through to 2022, lamb shipments, 2013 was a better year for an improvement in economic sentiment throughout sheepmeat consumption is forecast to fall from Australian sheepmeat exporters to the market. Europe, and in particular in the UK, Australia’s 2.2kg per capita to 1.95kg per capita, tempering the Quota usage, which was 89% in 2012, increased to largest sheepmeat market in the region, look set to long term outlook. 99% in 2013, an indication of an improvement in make for a positive year for Australian sheepmeat conditions in the market, along with additional exporters to the EU. Australian lamb exports totalled 11,746 tonnes swt, Australian supplies. Figure 39 Lamb exports to EU 16 Figure 40 Lamb exports to EU by cut - 2013 chump 5.9% '000 tonnes swt leg 51.3% 14 Figure 41 Mutton exports to EU 14 '000 tonnes swt 12 other 10.2% 12 10 10 8 8 6 6 shank 15.3% 4 2 boneless loin 1.7% 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts 28 f = forecast Source: DA manufacturing 14.2% MLA’s Market Information Service – Australian sheep industry projections 2014 rack 1.4% 4 2 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts f = forecast Japan Lamb While a continued improvement is expected in the Mutton 12 Hokkaido economy and in the performance of assisted Australian mutton exports to Japan during 10 Genghis Khan (Hokkaido style Sheepmeat 2013, with volumes increasing 20% year-on-year to 8 barbecue) foodservice sector, the weak Yen, 3,787 tonnes swt – with a 54% lift in chilled 6 combined with strong competition for Australian shipments (to 85 tonnes swt). 4 shipments in 2014, limiting volumes to Japan to 1,163 tonnes swt, and 36% to 1,427 tonnes swt, at 7,697 tonnes swt, 11 tonnes more than the respectively, while backstrap volume slightly eased previous year. Improved supplies of chilled lamb (0.9%) to 894 tonnes swt. year-on-year, to 5,208 tonnes, while frozen lamb volumes were down 7% to 2,489 tonnes swt. Slow but gradual improvement of the tourism and local economy in the Hokkaido region – the largest sheepmeat consumption area – continued to underpin the volumes in the market. 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts Figure 43 Lamb exports to Japan by cut - 2013 manufacturing 31.8% leg 7.0% other 4.5% Sheepmeat demand in 2014 is expected to remain similar to 2013 levels, with any improvement in rack 8.2% buying hinging upon the market’s economic strength and supplies from New Zealand. The small, but well established, Genghis Khan market continues to require lamb and mutton shoulder cuts. Source: DA shoulder 48.4% That said, the Australian supply situation is The cut trend in 2013 was similar to 2012 and expected to tighten, for mutton in particular, previous years, with a 17% increase in shoulder resulting in an anticipated 20.8% decline in mutton shipments to 3,728 tonnes swt, but the growth was exports to Japan, at 3,000 tonnes swt. Figure 44 Mutton exports to Japan 25 partially offset by a 18% decline in shoulder meat 20 exports (more affordable alternative to shoulder, 15 with neck fillet removed) at 2,448 tonnes swt. Rack f = forecast meat) during 2013 increased 30% from 2012 to Lamb shipments to Japan during 2013 were stable from Australia lifted shipments to Japan by 4% '000 tonnes swt 2 Broken down by cut, shipments of leg and manufacturing (mostly trunk meat and shoulder 7,500 tonnes swt. 14 The improvement in the Hokkaido economy also lamb from other markets, will likely constrain Figure 42 Lamb exports to Japan '000 tonnes swt 10 (633 tonnes swt, down 7%) and leg (540 tonnes swt, up 27%) shipments were other major cuts to 5 Japan. 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts MLA’s Market Information Service – Australian sheep industry projections 2014 f = forecast 29 Hong Kong and Taiwan Hong Kong Taiwan Lamb Lamb Mutton In anticipation of sustained demand from the major Taiwan during 2014 are forecast to be down 35% forecast to be down 55% on 2013, at 3,000 tonnes Australian lamb exports to Hong Kong during 2014 on 2013, at 1,200 tonnes swt. swt. tonnes swt. In 2013, Australian lamb exports to Taiwan rose Australia’s annual mutton shipments to Taiwan 14% year-on-year, to 1,834 tonnes swt. While during 2013 were 36% above 2012, at 6,649 tonnes Partly assisted by lower NZ lamb exports to Hong manufacturing increased 115% year-on-year, to swt. While mutton manufacturing shipments fell Kong during 2013 (down 15% year-on-year, at 1,109 tonnes swt, shoulder exports were down 40% year-on-year, at 2,145 tonnes swt, the volumes 3,861 tonnes swt), Australian lamb exports to Hong 41% year-on-year, to 277 tonnes swt, influenced by of carcase and breast & flap rose to 2,140 tonnes Kong during the year lifted 116% year-on-year, to increased exports to China. swt (up 386%) and 881 tonnes swt (up 298%), Although NZ lamb exports to Taiwan during 2013 respectively. 7,539 tonnes swt, with breast & flap (3,690 tonnes swt) and manufacturing lamb (1,327 tonnes swt) decreased 40% year-on-year, to 1,659 tonnes swt, making up the majority of the shipments. Mutton Australian mutton exports to Taiwan during 2014 are markets of China, the Middle East and the US, are expected to be 14% lower than 2013, at 6,500 Similar to Hong Kong, Australian lamb exports to NZ mutton exports to Taiwan have decreased the NZ-Taiwan Economic Cooperation that came steadily for the last three years, with the 2013 into effect on 1 December 2013, will challenge annual volume down another 23% year-on-year, to Australia’s trade to Taiwan in 2014. Tariffs on NZ 5,064 tonnes swt. However, as stated earlier, NZ With a substantial decline in Australia’s mutton sheepmeat will gradually decline over the next three stands to benefit from tariff advantages into the production in 2014, exports to several markets are years. market in 2014. forecast to decline, including Hong Kong. Australia’s annual shipments during 2014 are anticipated to be significantly lower than the 2013 level, at 1,000 tonnes swt. Figure 45 Lamb exports to Greater China 60 Figure 46 Mutton exports to Greater China '000 tonnes swt 80 China Hong Kong Taiwan China Hong Kong Taiwan 50 Australian mutton exports to Hong Kong in 2013 registered the highest annual volume on record, at 6,641 tonnes swt, with a significant increase in 60 40 30 40 20 carcase exports, at 4,948 tonnes swt (from 288 tonnes swt in 2012). 20 10 0 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts 30 '000 tonnes swt MLA’s Market Information Service – Australian sheep industry projections 2014 f = forecast 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts f = forecast South East Asia Lamb Mutton Given the forecast for stronger global competition for Australian lamb during 2014, it is anticipated that volumes to South East Asia (SEA), at 10,000 tonnes swt, will destinations for Australia within the region. After seeing massive growth in 2013 be down 13% on 2013, as volumes continue to flow to the largest markets – (primarily due to supply), Australian mutton exports to SEA during 2014 are primarily the Middle East, China and the US. expected to be back significantly, at 6,500 tonnes swt. Australian lamb exports to SEA during 2013 achieved a record annual volume, at Australian mutton exports to SEA during 2013 surged across the region, led by 11,493 tonnes swt. While the Australian annual volume to Malaysia reached 6,255 traditional markets, Malaysia (at 11,135 tonnes swt – record annual volume) and tonnes swt in 2013, exports to Singapore fell 16%, to 1,450 tonnes swt. However, Singapore (up 28% on 2012, to 7,401 tonnes swt). Illustrating the growth was also trade to Vietnam and Indonesia improved during the year, at 1,760 tonnes swt and exports to Vietnam, at 3,233 tonnes swt from only 95 tonnes swt in 2012. 933 tonnes swt (both were record annual shipments), respectively. Similar to lamb, Malaysia and Singapore are both major mutton export Carcase exports to the region during 2013 climbed 112% year-on-year, to 12,543 Shoulder was the most popular cut shipped to the region in 2013, totalling 4,542 tonnes swt – mainly exported to Malaysia, Singapore and Vietnam. Following tonnes swt, the majority of which (89% or 4,028 tonnes swt) was sent to Malaysia. carcase was manufacturing (4,043 tonnes swt) and leg (3,225 tonnes swt), both of Indicating the existing “grey channel” through to China, breast & flap exports to which were mainly exported to Malaysia and Singapore. Vietnam lifted 83% year-on-year, to 1,254 tonnes swt, accounting for 95% of total breast & flap shipments to the SEA region. South East Asia Figure 48 Mutton exports to SEA Figure 47 Lamb exports to SEA 12 *South East Asia = Singapore, Malaysia, Indonesia, the Philippines, Thailand and Vietnam '000 tonnes swt 25 10 '000 tonnes swt 20 8 15 6 10 4 5 2 0 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts f = forecast 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14f Source: DA, MLA forecasts f = forecast MLA’s Market Information Service – Australian sheep industry projections 2014 31 Other Papua New Guinea Australian lamb exports to Papua New Guinea South Africa Figure 49 Lamb exports to other markets 30 South Africa is a relatively small importer of (PNG) reached 12,482 tonnes swt in 2013, back 5% Australian lamb, with exports in 2013 totalling 1,775 year-on-year, taking 6% of Australia’s market share. tonnes swt, down 9% from the previous year. The Almost all of the lamb shipped to PNG in 2013 was major cut shipped to South Africa last year was frozen, with the major cuts being breast & flap breast & flap (1,584 tonnes swt), and all shipments (8,891 tonnes swt), neck (1,444 tonnes swt) and were frozen cuts. '000 tonnes swt 25 Papua New Guinea South Africa Korea Russia 20 15 10 5 0 shoulder (1,115 tonnes swt). Mutton export volumes eased 4% year-on-year, to Mutton shipments to PNG have almost halved since 1,198 tonnes swt, which is a big difference from the five years ago, as prices have become too highs of 2006, when shipments totalled 19,620 expensive to sustain imports of Australian product. tonnes swt. Increasing mutton export prices over In 2013, 2,458 tonnes swt of mutton was shipped to the last five years have seen Australian mutton PNG from Australia, up 161% year-on-year, shipment volumes to South Africa decline 40 following a particularly small export volume the considerably. 30 previous year. All mutton exports to PNG during 2013 were frozen, and the primary cut was breast & flap (2,012 tonnes swt). Korea In 2013, Australian lamb exports to Korea increased Russia Despite a 12% year-on-year decline, Australian main lamb cuts shipped to Korea in 2013 were lamb exports to Russia have been steadily shoulder (1,464 tonnes swt), breast & flap (590 increasing over the past decade, reaching 1,453 tonnes swt), and manufacturing (511 tonnes swt). tonnes swt in 2013. The bulk (86%) of lamb shipments to Russia were frozen cuts, with the major cut being lamb shoulder (1,140 tonnes swt). Mutton shipments lifted 26% on last year, to 3,816 50 '000 tonnes swt Papua New Guinea South Africa Korea Russia 20 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Source: DA, MLA forecasts export volume to Korea in the past 10 years. The Figure 51 Lamb exports to Africa and the Pacific 35 '000 tonnes swt South Africa other Africa Pacific 30 In contrast with most other Asian markets, Korea is 25 only a small importer of Australian mutton, with 20 shipments in 2013 totalling 992 tonnes swt, up 4% 15 year-on-year. 10 tonnes swt, with the main cuts consisting of leg (1,538 tonnes swt), carcase (992 tonnes swt), and shoulder (927 tonnes swt). 32 Figure 50 Mutton exports to other markets 10 6%, reaching 3,175 tonnes swt – the largest yearly 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Source: DA, MLA forecasts MLA’s Market Information Service – Australian sheep industry projections 2014 5 0 01 02 03 04 Source: DA, MLA forecasts 05 06 07 08 09 10 11 12 13 14f f = forecast Offal With the high levels of slaughter and production which was 13% higher than the previous year. The and mutton) offal exports in 2013 rose 19% year-on- Middle East continued to demand the bulk of year, with the total exports for the year reaching Australian sheep livers (9,656 tonnes), although the 30,134 tonnes swt. volume exported remained relatively steady on the previous year. Liver shipments to South Africa The Middle East remained the primary destination increased more than three-fold year-on-year, for sheep offal throughout 2013, accounting for over totalling 831 tonnes swt in 2013. one-third of Australia’s total sheep offal shipments at 11,918 tonnes swt, a 6% increase on the Liver exports reached 11,050 tonnes swt in 2013, sustained throughout 2013, Australian sheep (lamb Sheep heart exports lifted 28% year-on-year in previous year. Hong Kong was the second largest 2013, to 3,714 tonnes swt, with South Africa taking market for sheep offal exports in 2013, and a the majority of shipments for the year (1,062 tonnes decrease in shipping costs early in the year assisted swt). Other key markets for heart in 2013 were a 23% year-on-year rise in shipments, reaching Papua New Guinea (963 tonnes swt) and China (881 9,788 tonnes swt. tonnes swt). South Africa, China and Papua New Guinea were also growing markets for Australian sheep offal in 2013, with exports totalling 1,897 tonnes swt (up 16%), 1,876 tonnes swt (up 90%) and 1,774 tonnes swt (up 59%), respectively. Figure 52 Australian Offal Exports 35 25 in 2013, as export volumes increased 19% year-on- 20 year, to 11,125 tonnes swt, largely driven by a 23% 15 swt). Kidney 6.1% 30 Tripe was the primary sheep offal product shipped lift in tripe shipments to Hong Kong (9,246 tonnes Figure 53 Australian sheep offal by cut - 2013 '000 tonnes swt Heart 12.3% Other 3.7% Tripe 36.9% 10 5 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Source: DA Source: DA Tongues 4.3% Liver 36.7% MLA’s Market Information Service – Australian sheep industry projections 2014 33 Live exports – summary Australian live sheep exports are forecast to reach A significant challenge for exporters will be in securing Figure 54 Australian live sheep exports 2.3 million head in 2014, up 22.3% on the estimated adequate volumes of suitable sheep, given a 8 1.88 million head for 2013. combination the record level of sheep turnoff in 2013 7 and the expected strong processor demand in 2014. Improved market access in key markets in the Middle East is likely to underpin the forecast rise; Market access will continually be sought after million sheep and lambs 6 5 4 3 however, this will likely impact on the recent growth across all countries, and ongoing negotiations in other live sheep markets. regarding ESCAS standards with Middle Eastern 1 markets, in particular, Bahrain, Turkey, Libya and 0 2 97 Saudi Arabia will likely see further increases in live sheep exports in 2014. Table 4 Australian live sheep exports (head) 2013 e 2009 2010 2011 2012 Kuwait 948,271 1,076,455 956,725 706,644 775,000 Qatar 352,695 321,415 395,728 531,894 535,000 Bahrain 747,827 535,731 354,450 249,741 0 Turkey 0 215,038 352,352 245,147 120 Jordan % change 2014 f % change To: 800,000 3% 1% 550,000 3% -100% 200,000 - -100% 250,000 208233% 470,511 265,986 217,067 327,960 320,000 -2% 300,000 -6% Israel 23,400 42,000 56,600 64,007 60,000 -6% 65,000 8% Oman 289,223 69,073 41,025 19,892 50,000 151% 40,000 -20% UAE 130,312 78,748 37,385 33,211 105,000 216% 80,000 -24% Saudi Arabia 576,147 262,500 24,000 69,000 0 -100% 0 Other 29,223 101,625 23,145 31,120 34,880 12% 15,000 -57% Total 3,567,609 2,968,571 2,458,477 2,278,616 1,880,000 -17% 2,300,000 22% Source: ABS, MLA forecasts 34 10% 0% f = forecasts (indicated in italics) e = estimate based on 11 months data MLA’s Market Information Service – Australian sheep industry projections 2014 99 01 Source: ABS, MLA forecasts 03 05 07 09 11 13e 15f 17f e = estimate, f = forecast Live exports – markets Based on eleven months of live export data in 2013, total live sheep exports are Underpinning this decrease, continuing ESCAS negotiations with Saudi Arabia and Competition from Somalia is expected to increase steadily in the medium term, Turkey resulted in large year-on-year declines, while the exclusion of Bahrain from also impacting demand for Australian sheep. Exports to Jordan decreased 2% in 2013, at 320,000. However, greater Kuwait is historically Australia’s largest live sheep export market and expected to competition for supply is likely to see live exports in 2014 settle at 300,000 head, remain the case in 2014, with exports forecast to remain steady on 800,000 head. down 6% year-on-year. The absence of Bahrain from the Gulf shipping circuit in 2012 and 2013, combined with the recent market adjustments in the Middle East, disrupted trade over the past two years, but it is likely that the trade will recover slightly in 2014. Although making a slight resurgence in late 2013, Oman is currently experiencing issues with ESCAS, which will likely see numbers drop to 40,000 head in 2014. the trade also contributed. estimated to have reached 1.88 million head in 2013, back 17% on 2012. Qatar is a stable live sheep export market and is estimated to have remained firm Increased importer/exporter activity in the United Arab Emirates throughout 2013 has seen numbers almost treble total exports in 2012. It is expected that this number will decrease slightly in 2014, with the market stabilising at around 80,000 head. on 2012, at 530,000 head in 2013. The market is expected to experience growth in 2014, with improved trade conditions expected to minimise market access issues experienced in 2013, this will likely to see the trade reach 550,000 head in 2014. Figure 56 Live sheep exports by destination Figure 55 Australian live sheep exports by destination January to November 2013 1,741,939 head January to November 2012 2,147,047 head Kuwait 30.2% Jordan 15.3% million head 8 7 Kuwait 41.7% Jordan 16.5% Saudi Arabia Kuwait UAE Jordan Oman Qatar Turkey other Bahrain 6 5 Bahrain 11.6% Oman 0.5% Qatar 22.2% Source: ABS 4 UAE 1.2% Other 12.7% Israel 3.0% Saudi Arabia 3.2% Oman 2.8% UAE 5.4% 3 Israel Other 3.1% 1.9% 1 2 0 Qatar 28.5% 95 97 Source: ABS, MLA forecasts 99 01 03 05 07 09 11 13e 14f e = estimate, f = forecast MLA’s Market Information Service – Australian sheep industry projections 2014 35 Statistical appendices 36 MLA’s Market Information Service – Australian sheep industry projections 2014 Appendix 1 – Mutton 20x10 Table 5 Australian mutton exports to top 20 destinations and major regions by the 10 main cuts – continued on next page Total (All Cuts) Carcase % change 2013 tonnage Net change 65,349 6 1% 82,002 4 1, 5 3 6 254% 27,026 12 , 7 6 1 115 1% MALAYSIA 11, 13 5 5,573 DUBAI 9,889 US 8,747 SINGAPORE 7,401 TAIWAN Leg Manufacturing Breast & flap % change 2013 tonnage 35,345 76% 28,437 8 , 8 15 45% 14 , 9 2 9 1, 9 7 0 15 % 20,777 10 , 0 0 4 93% 24,667 10 4 6 % 6,390 4,651 267% 1, 9 6 6 1, 3 6 1 225% 16 , 2 7 6 7,550 87% 4,878 8 12 20% 2,721 - 15 5 - 5% 2,402 - 16 7 - 7% 11 5 80% 10 0 % 5,457 2,972 12 0 % 791 329 7 1% 3,066 1, 2 7 2 7 1% 1 0 14 7 % 261 3% 5,761 - 117 - 2% 2,765 259 10 % 12 2 51 72% 11 4 67% 1, 2 7 6 17 % 5 , 18 8 - 4 10 - 7% 1, 7 2 6 982 13 2 % 19 19 - 0 0 0% 1, 6 2 7 28% 3,877 6 13 19 % 2,303 654 40% 929 232 33% 1 -4 - 79% 6,649 1, 7 7 5 36% 2 , 14 0 1, 7 0 0 386% 10 5 - 31 - 23% 2 , 14 5 - 1, 4 3 2 - 40% 881 660 298% HONG KONG 6,641 5,733 632% 4,948 4,660 16 2 0 % 462 242 110 % 30 10 50% 8 11 552 2 14 % OMAN 5,458 2 , 4 10 79% 4,323 1, 9 7 0 84% 1, 0 8 6 422 63% 0 0 0% 0 0 0% KUWAIT 4,976 - 782 - 14 % 3 , 18 1 - 1, 0 9 1 - 26% 708 - 93 - 12 % 536 203 6 1% 0 0 0% UNITED KINGDOM 4,230 951 29% 3,495 1, 0 16 4 1% 3 13 - 10 1 - 24% 2013 tonnage Net change World Total 17 2 , 0 4 5 CHINA 57,888 SAUDI ARABIA Destination 0 Net change % change 2013 tonnage Net change % change 2013 tonnage Net change % change 0 RUSSIAN FEDERATION 3 , 8 16 791 26% 992 40 4% 1, 5 3 8 292 23% 19 2 37 24% JAPAN 3,787 623 20% 10 1 - 14 - 12 % 1, 16 3 267 30% 1, 4 2 7 376 36% VIETNAM 3,233 3 , 13 8 3 3 0 1% 2,988 2,905 3 5 17 % 6 3 13 1% 0 0 0% 9 9 - MEXICO 2,895 2,492 6 18 % 868 779 873% 0 0 0% 0 0 0% 0 0 0% MOROCCO 2,770 2,726 6 19 5 % 2,770 2,762 3 4 5 13 % 0 0 0% 0 0 0% 0 0 0% PAPUA NEW GUINEA 2,458 1, 5 16 16 1% 15 15 - 55 55 - 87 - 31 - 26% 2 , 0 12 1, 2 5 4 16 5 % EGYPT 2,422 - 1, 0 15 - 30% 786 17 2% 522 - 429 - 45% 0 0 0% 10 6 - 13 5 - 56% QATAR 1, 9 6 2 - 565 - 22% 1, 3 0 8 - 468 - 26% 5 18 - 97 - 16 % 16 - 20 - 56% -6 - 32% 0 0 1, 4 14 604 75% 1, 3 8 8 588 73% Middle East 4 0 , 9 11 - 5,800 - 12 % 22,497 - 5,802 - 2 1% 8,874 206 2% 3,076 38 1% 19 3 - 89 - 32% SE Asia 18 , 9 6 9 7,301 63% 9,555 3 , 7 17 64% 3 , 2 19 945 42% 4,043 1, 5 0 3 59% 2 -4 - 66% JAMAICA 0 13 0 0 Source: Department of Agriculture MLA’s Market Information Service – Australian sheep industry projections 2014 37 Appendix 1 – Mutton 20x10 Table 5 Australian mutton exports to top 20 destinations and major regions by the 10 main cuts – from previous page Shoulder 2013 tonnage Net change World Total 11, 8 3 6 CHINA 3,391 SAUDI ARABIA MALAYSIA Destination % change 2013 tonnage Net change 6,487 12 1% 771 2 , 6 19 339% 1, 4 9 0 - 225 - 13 % 1, 4 4 8 769 Bone-in loin % change 2013 tonnage - 475 - 38% 3,021 481 - 12 4 - 10 0 % 269 - 16 4 5 - 12 - 70% 922 - 243 113 % 49 48 4558% 61 Backstrap Net % change change 2013 tonnage Net change 19 % 1, 8 5 2 - 38% 208 - 2 1% - 15 Shank Rack % change 2013 tonnage Net change 405 28% 2,392 876 58% 2,303 927 67% 207 35386% 7 18 659 1115 % 495 2 10 74% 4 4 - 72 - 45 - 39% 67 25 59% - 20% 96 70 276% 78 55 237% 50 38 3 18 % % change 2013 Net tonnage change % change 110 38 54% 29 17 13 5 % 25 19 292% 58 23 68% 19 8 - 116 - 37% 627 15 0 32% 1, 4 2 1 659 86% 6 6 - 0 0 0% 3 1 29% 320 -7 - 2% 24 8 47% SINGAPORE 7 4 14 6 % 0 0 0% 46 34 285% 14 1 80 12 9 % 12 6 98% 16 8 93% TAIWAN 0 0 - 55% 79 60 307% 371 371 - 10 - 28 - 73% 64 12 24% 673 423 17 0 % HONG KONG 0 -4 - 92% -7 - 10 0 % 114 10 3 10 19 % 1 1 - 15 7 115 278% 1 0 43% 7 5 250% 0 0 0% 6 1 32% 0 0 0% 5 5 - 20 3 17 % 13 5 81 14 9 % 2 2 - 16 16 - 1 1 - 19 - 56 - 75% 206 56 38% 3 3 - 39 13 52% 0 0 - -2 - 10 0 % 10 3 % 0 - 76 - 10 0 % -5 - 22% DUBAI US OMAN KUWAIT 0 UNITED KINGDOM RUSSIAN FEDERATION 927 451 0 95% 0 0 0% 13 3 68 0 19 JAPAN 84 - 12 - 13 % 5 5 2047% 4 4 - 894 -8 - 1% 72 - 23 - 24% 8 6 285% VIETNAM 14 6 14 5 16 7 8 7 % 22 22 - 0 0 0% 0 0 0% 22 16 278% 22 20 830% 1, 9 6 0 1, 6 4 6 525% 44 44 - 45 30 202% 0 0 0% 0 0 0% 10 1 57 12 9 % 13 12 7 18 % 70 70 - 0 0 0% 467 - 474 - 50% 428 - 78 - 15 % QATAR -1 - 10 0 % 0 JAMAICA -3 - 10 0 % 0 MEXICO MOROCCO PAPUA NEW GUINEA EGYPT 38 Forequarter 0 0 0 0% 0 26 26 - 0 0 0 0 0 0 0% 37 -8 - 18 % 0 0 0% 0 3 0 - 14 % 13 13 - 113 84 283% 0 0 0% 17 17 - 0 0 0 0 Middle East 2,021 10 0 5% 508 - 464 - 48% 1, 5 9 4 - 111 - 7% 10 4 14 15 % 407 - 13 3 - 25% 941 246 35% SE Asia 1, 4 5 9 774 113 % 49 48 4558% 119 27 30% 237 15 0 17 2 % 90 60 208% 86 49 13 2 % MLA’s Market Information Service – Australian sheep industry projections 2014 Appendix 2 – Lamb 20x10 Table 6 Australian lamb exports to top 20 destinations and major regions by the 10 main cuts – continued on next page Total (All Cuts) Breast & flap Leg Shoulder 2013 tonnage Net change % change 2013 tonnage Net change % change 2013 tonnage World Total 2 13 , 7 14 10 , 0 14 34% 3 9 , 15 6 1, 6 0 6 4% 3 0 , 18 0 624 2% 30,541 3,929 15 % 15 , 4 8 9 835 6% CHINA 39,535 2 , 5 13 7% 20,331 1, 0 2 4 5% 496 435 7 10 % 6 , 14 3 202 3% 5,885 - 35 - 1% US 3 9 , 18 0 10 , 0 2 5 3 0 1% 4 -8 - 67% 12 , 2 7 3 1, 4 2 5 13 % 4,037 - 2 , 10 6 - 34% 685 - 244 - 26% BAHRAIN 13 , 3 5 1 2,562 24% 0 0 0% 4 -4 - 47% 25 - 17 5 - 88% 15 15 - DUBAI 13 , 2 2 1 - 2 18 - 2% 2 0 20% 2,396 291 14 % 1, 7 6 4 3 12 2 1% 2 -5 - 7 1% JORDAN 12 , 7 4 1 - 620 - 5% 0 -2 - 10 0 % 646 - 388 - 37% 1, 4 9 2 - 352 - 19 % 252 10 9 76% PAPUA NEW GUINEA 12 , 4 8 2 10 8 1% 8,891 - 1, 3 9 4 . 8 8 - 14 % 367 29 9% 1, 115 348 45% 351 110 46% Destination Net change % change 2013 tonnage Manufacturing Net change % change 2013 tonnage Net change % change UNITED KINGDOM 9 , 12 4 10 0% 1 1 - 4 , 4 12 - 496 - 10 % 15 - 20 - 57% 1, 6 6 5 16 5 11% JAPAN 7,697 4,048 116 % 10 0 - 4% 540 115 27% 3,728 549 17 % 2,450 - 558 - 19 % HONG KONG 7,539 1, 2 3 9 25% 3,690 2,030 12 2 % 18 7 77 70% 3 16 19 6 16 4 % 1, 3 2 7 476 56% MALAYSIA 6,255 86 1% 26 3 13 % 549 201 58% 4,028 985 32% 110 52 9 1% QATAR 6 , 0 19 878 19 % 0 0 0% 274 6 2% 93 - 10 - 10 % 16 16 - CANADA 5,563 1, 17 6 40% 0 0 0% 2,240 455 25% 464 12 6 37% 13 5 25 23% KUWAIT 4 , 15 0 - 19 1 - 5% 0 0 0% 53 -6 - 11% 82 - 46 - 36% 330 44 15 % SAUDI ARABIA 3,783 16 7 6% 1 -6 - 80% 1, 3 4 8 - 327 - 20% 393 17 4% 86 1 1% SOUTH KOREA 3 , 17 5 - 4 , 5 17 - 62% 590 - 39 - 6% 81 -9 - 10 % 1, 4 6 4 245 20% 5 11 -3 - 1% IRAN 2,755 - 43 - 2% 3 1. 7 - 309 - 9 1% 64 - 606 - 9 1% - 539 - 10 0 % 0 0 0% ABU DHABI 2,503 226 14 % 0 0 0% 16 3 25 18 % 119 4 4% 0 0 0% TAIWAN 1, 8 3 4 - 17 6 - 9% 13 6 - 21 - 13 % 3 - 42 - 92% 277 - 19 2 - 4 1% 1, 10 9 594 115 % SOUTH AFRICA 1, 7 7 5 844 92% 1, 5 8 4 - 13 1 - 8% 5 - 23 - 8 1% - 30 - 10 0 % 10 0 - 20 - 17 % VIETNAM 1, 7 6 0 - 84 - 5% 1, 2 5 4 568 83% 87 14 19 % 93 83 860% 69 62 953% 59,777 7,965 15 % 35 - 398 - 92% 5 , 10 4 - 1, 115 - 18 % 4,463 - 1, 0 2 1 - 19 % 701 17 5 33% 9,734 993 11% 65 - 19 - 23% 1, 6 6 0 13 7 9% 4,449 946 27% 205 23 13 % Middle East SE Asia Source: Department of Agriculture MLA’s Market Information Service – Australian sheep industry projections 2014 39 Appendix 2 – Lamb 20x10 Table 6 Australian lamb exports to top 20 destinations and major regions by the 10 main cuts – from previous page Carcase Forequarter 2013 tonnage Net change % change 2013 tonnage Net change % change 2013 tonnage 60,584 20,426 5 1% 9,663 - 436 - 4% 2,347 - 1, 8 6 7 CHINA 2,589 2,508 3094% 75 - 27 - 27% 75 US 10 , 0 9 4 4,571 83% 4 , 0 14 - 4 16 - 9% BAHRAIN 13 , 3 0 1 10 , 19 2 328% 6 -2 - 26% DUBAI 7,705 1, 8 2 2 3 1% 741 44 JORDAN 8,645 2 , 4 12 39% 73 0 0 - 44% 12 Destination World Total PAPUA NEW GUINEA Shortloin Net % change change Shank Neck 2013 tonnage Net change % change 2013 tonnage Net change % change - 44% 5,597 - 454 - 7% 9,720 440 5% 75 - 4,471 374 9% 18 2 17 9 5 18 3 % -5 - 10 0 % 5 0 7% 4 , 10 9 29 1% 0 0 0% 0 0 - 42% 6% 57 1 2% 68 1 1% 338 75 29% 5 - 19 - 79% 25 54% 1, 5 4 8 - 1, 7 0 1 - 52% 1 -1 - 5 1% 74 69 16 6 4 % 10 - 389 - 98% 4 57% 19 - 42 - 69% 57 24 74% 44 28 16 7 % 1, 4 4 4 14 2 11% 0 2013 Net tonnage change 5,978 484 2,779 638 % change 9% 0 30% 0 0 0 - 10 0 % 88 - 18 - 17 % 0 0 0% 1 1 - 2,368 350 17 % 0 JAPAN 13 7 - 23 - 14 % 633 - 49 - 7% 28 - 11 - 28% 42 29 224% 33 0 1% -9 - 10 0 % HONG KONG 845 840 18 7 5 8 % 406 35 9% 0 0 - 20 3 2 1% 57 10 22% 653 4 10 16 9 % MALAYSIA 724 - 82 - 10 % 19 4 - 53 - 22% 13 7 10 5 % 30 9 42% 478 111 30% 37 23 17 2 % 5,386 85 2% 18 3 2 1% 8 -4 - 3 1% 0 -1 - 94% 8 -6 - 43% 0 CANADA 73 -8 - 10 % 723 34 5% 0 0 0% 1, 2 5 4 15 5 14 % 574 76 15 % - 12 KUWAIT 3,490 1, 14 5 49% 117 59 10 3 % 22 - 58 - 72% 1 0 38% 9 8 12 3 1% SAUDI ARABIA 1, 0 3 5 266 35% 330 -4 - 1% 46 - 67 - 59% 5 1 20% 97 33 53% SOUTH KOREA 3 -1 - 28% 12 1 - 10 - 7% 15 14 14 0 1% 2 -5 - 72% 90 - 74 - 45% IRAN 2,580 - 2 , 4 19 - 48% 0 0 0% 42 42 - 0 - 261 - 10 0 % ABU DHABI 2 , 18 8 - 95 - 4% 16 9 119 % 12 11 12 2 1% 0 2 0 29% 65 65 14 7 2 8 3 % 39 - 11 - 23% 0 0 0% 0 -2 - 98% 111 - 12 9 - 54% 32 - 47 - 60% 4 - 24 - 87% 0 0 0% 0 0 0% 78 78 - - 17 - 10 0 % 4 -8 - 65% 118 96 439% 87 14 18 % 0 -1 - 90% 23 2 7% 15 2 12 % 7 0 3% 44,430 13 , 3 6 6 43% 1, 7 13 220 15 % 1, 9 2 6 - 2 , 0 14 - 5 1% 78 2 2% 579 - 65 - 10 % 73 - 595 - 89% 1, 2 0 9 - 72 - 6% 867 - 65 - 7% 21 12 15 1% 19 9 - 28 - 12 % 759 72 10 % 82 52 17 2 % UNITED KINGDOM QATAR TAIWAN SOUTH AFRICA VIETNAM Middle East SE Asia 40 Rack MLA’s Market Information Service – Australian sheep industry projections 2014 44 - 10 0 % 28 18 2 % - 95 - 10 0 % 18 6 46% 13 - 50 - 80% 0 Appendix 3 – Live sheep exports Table 6 Calendar year live sheep exports Country 2004 Argentina Bahrain Bosnia and Herzegovina Brazil Chile China Indonesia Israel Japan Jordan Kazakhstan Kuwait Lebanon Libya Malaysia Marshall Islands Mauritius Mexico New Zealand Norfolk Island Oman Philippines Qatar Russia Saudi Arabia Singapore South Africa Switzerland Taiwan Thailand Turkey UAE Uruguay USA Vietnam 7,014 490,210 TOTAL VOLUME TOTAL VALUE Source: ABS 2005 2006 2007 2008 2009 521,455 556,843 2 561,522 66 716,040 11 747,827 135 28 13 974 2,879 1,792 3,800 5,000 156 28 4 62 35,000 23,400 68 470,511 42,000 9 265,986 56,600 64,007 54,164 217,067 327,960 287,792 948,271 1,076,455 956,642 706,644 726,809 20,588 75,026 19,000 15,903 18,864 24,385 150 70 1,300 32,189 930,343 1,259,904 20,711 21,167 67 4 289,170 137,406 67 8,948 2011 2012 498,731 37,000 4 5 344,450 10,000 10 11 26 249,741 2013* 884,886 219 890,545 267,829 36,834 276 383,943 962,163 930,178 956,276 19,705 16,675 21,452 81 49 2,056 23 414 6 358,972 37 179,885 320,030 80 191,669 1,072,089 15,530 1,193,635 9,292 539,556 876 191,850 66 1,032,395 6,006 25,076 26,128 140 390 5 38 11 12 19,840 245 684,940 500 2010 3,517 11 1 741,106 231 269,116 10 12 17 58 289,223 891 352,695 69,073 18 321,415 41,025 260 395,752 19,892 6,877 531,894 873,937 8,761 576,147 7,637 262,500 7,401 24,000 6,399 69,000 3,933 3 130,312 6 215,038 78,747 4 2 352,352 37,385 245,147 33,211 10 13 1 48,476 497,241 4,615 31 57 270 196,095 11 230,775 209,373 1 15 185,754 19 10 175,629 43 120 94,795 4 2 30 3,397,140 4,184,920 4,167,034 3,773,029 4,214,989 3,567,609 2,968,571 2,457,948 2,278,616 1,741,939 $228,959,769 $280,582,589 $293,445,862 $262,055,133 $321,157,801 $322,960,587 $322,527,205 $328,103,448 $279,748,762 $155,183,732 *=January to November MLA’s Market Information Service – Australian sheep industry projections 2014 41 Sources and acknowledgements This document was produced and compiled by Meat & Livestock Australia (MLA), with the help of industry participants in the annual cattle projections workshop. Baseline forecasts were also provided by the Centre for International Economics’ Global Meat Industries (GMI) model. The sources listed below are also duly acknowledged for the provision of statistical, analytical and forecast information used in this document. Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Infoscan NZ International Monetary Fund (IMF) Australian Wool Exchange (AWEX) Millward Brown Australian Wool Production Forecasting Committee (AWPFC) Nielsen Homescan Australian Bureau of Statistics (ABS) Roy Morgan Beef + Lamb New Zealand United States Department of Agriculture (USDA) Centre for International Economics (CIE) Weeks Consulting Services Commonwealth Bureau of Meteorology (BOM) World Bank Department of Agriculture (DA), Australia Eurostat 42 MLA’s Market Information Service – Australian sheep industry projections 2014 Acronyms ABARES – Australian Bureau of Agricultural and Resource IMF – International Monetary Fund Economics and Sciences lb – Pounds weight ABS – Australian Bureau of Statistics lwt – Liveweight AWPFC – Australian Wool Production Forecasting Committee MLA – Meat & Livestock Australia CIE – Centre for International Economics NLRS – National Livestock Reporting Service (Meat & Livestock Australia) CIS – Commonwealth of Independent States NZ – New Zealand cwt – Carcase weight PNG – Papua New Guinea DA – Department of Agriculture – Australia swt – Shipped weight EMI – Eastern Market Indicator (wool price) UAE – United Arab Emirates EU – European Union UK – United Kingdom FAO – Food and Agriculture Organisation US – United States FOB – Free on board ship (export price loaded on ship before departure) USDA – United States Department of Agriculture FTA – Free Trade Agreement MLA’s Market Information Service – Australian sheep industry projections 2014 43 Notes 44 MLA’s Market Information Service – Australian sheep industry projections 2014 Meat & Livestock Australia Level 1, 40 Mount St North Sydney NSW 2060 Phone: 02 9463 9333 Fax: 02 9463 9393 Free call: 1800 023 100 (Australia only) Email: [email protected] www.mla.com.au
© Copyright 2026 Paperzz