The MLA have released a very positive report on the sheep meat industry. The key message is that global production is failing to match consumption, which should keep sheep meat prices high for the next few years.
The report describes how consumption and awareness will drive consumer demand, not just the increasing purchasing power of developing country consumers. With the limited sheep supply, the competition between markets will remain strong, with Australian and New Zealand's position as leading global producers being respected in the market by consumers worldwide.
In 1990 the price of sheep meat was under half the price of beef, it is expected to be 86% of the price of beef by 2025.
Image from the MLA: Locke, R. O'Connor, J. Sheep meat's unique global position, April 2017, pg 4.
"What sets sheepmeat apart from other meat proteins is its unique supply situation. The crux of the situation is that global production is currently failing to match consumption demand, which has seen a considerable rise in prices relative to other meat protein."
This is good news for Australian sheep producers.
Sources of information:
Locke, R. O'Connor, J. Sheep meat's unique global position, April 2017.https://www.mla.com.au/prices-markets/Trends-analysis/real-price-reports/
Sheep Central, Sheep meat prices second only to beef but consumer demand set to grow, April 5, 2017. <ttp://www.sheepcentral.com/sheep-meat-prices-second-only-to-beef-but-consumer-demand-set-to-grow/>
Image from: Locke, R. O'Connor, J. Sheep meat's unique global position, April 2017, pg 4.