ESCALATING sheepmeat prices have failed to impact consumption in developing countries, but on the flip, affordability has taken a blow to consumption in developed economies.
Availability and price are set to be the key limiting factors for consumption in the future according to a new report, Sheepmeat’s Unique Global Position, released by Meat and Livestock Australia’s (MLA) this week.
As the world’s largest sheepmeat exporter and second largest producer, the report stated Australia was set to benefit from growing demand in developing countries, despite increasing prices.
After overtaking pigmeat in 2001, sheepmeat is now the second highest priced meat behind beef.
Since 2012, production growth has improved relative to other meats and is forecast to continue to rise to 2025.
Despite farm profitability has enticed faster growth in flocks, the report forecast supply would continue to lag well behind demand.
While sheepmeat’s share of global protein consumption was forecast to remain about five per cent, the position of sheepmeat in diets across the world was buoying optimism within the Australian industry.
The report explored four influential markets – China, the Middle East, the United States and Australia.
MLA’s market information manager Ben Thomas said China and the Middle East were driving the growth of sheepmeat consumption on a global scale, largely due to population growth, urbanisation and increasing incomes.
“The product has the added advantage of no religious taboos, and is being preferenced by consumers in the world’s fastest growing population centres and ethnic groups,” Mr Thomas said.
“Sheepmeat supply has proven unable to match demand and, despite expected faster price-driven growth in the next decade, the imbalance seems likely to continue.
“It means competition between markets for the limited sheepmeat supply is likely to remain intense.”
China and the Middle East affiliation with sheepmeat tend to be with lower-value product, a staple part of many traditional cooking methods, however Mr Thomas said this was changing as markets become more progressive.
“In many developed countries, such as the United States, lamb is a niche product, not readily available or commonly consumed, except in certain demographics and minority ethnic segments. However, due to the size of the population, the US is identified as a potential growth market for Australian sheepmeat,” Mr Thomas said.
“In contrast, the position of lamb in Australia and New Zealand is different from other developed countries, with strong awareness and preference for sheepmeat arising from a long history of production and consumption.”
As a result of stronger global demand, the share of total production has swung in favour of exports, with 53pc of total lamb production exported last year.
He said in all developed countries, consumer perceptions and awareness, rather than purchasing power, affected sheepmeat consumption.
Annabelle Cleeland
Annabelle Cleeland is Fairfax Media’s national sheep and wool writer. Annabelle joined the Fairfax team in 2012 to nurture her love of Australian agriculture. She began as the Victorian western district reporter at Stock & Land before taking on a senior position as a journalist reporting on all industries statewide. Annabelle’s appetite to report on issues which affect the sheep and wool industry has seen her travel to many parts of Australia and abroad. She is excited to spin industry yarns during a period of substantial demand for the sheepmeat and wool industries. Annabelle enjoys horse riding and climbing mountains, and is a lazy supporter of the Geelong Football Club.
Annabelle Cleeland is Fairfax Media’s national sheep and wool writer. Annabelle joined the Fairfax team in 2012 to nurture her love of Australian agriculture. She began as the Victorian western district reporter at Stock & Land before taking on a senior position as a journalist reporting on all industries statewide. Annabelle’s appetite to report on issues which affect the sheep and wool industry has seen her travel to many parts of Australia and abroad. She is excited to spin industry yarns during a period of substantial demand for the sheepmeat and wool industries. Annabelle enjoys horse riding and climbing mountains, and is a lazy supporter of the Geelong Football Club.
