Australian mutton exports surge amid soaring global prices

AUSTRALIA – Australian sheep farmers are witnessing a sharp rise in meat exports as global demand for lamb and mutton pushes prices to unprecedented levels.

Export data from the first four months of 2025 shows a 10% increase in shipments compared to the same period last year, according to Australian trade records.

In 2024, Australia exported 702,000 metric tons of lamb, mutton, and goat meat, generating nearly US$2.34 billion, marking a significant jump of almost 200,000 tons from the previous peak recorded in 2019.

This surge in demand has driven the price of heavy lambs to nearly US$7.14 per kilogram, a 50% increase from the same time last year, based on data from Meat & Livestock Australia’s national price index.

Meat processors are competing to secure livestock, which has added pressure on supply chains and further pushed up prices.

China remains the top buyer of Australian sheep meat, while other key markets include the United States, the United Kingdom, the European Union, and the Middle East.

According to industry analysts, growing global populations and rising household incomes are fueling increased consumption of lamb and mutton, particularly as beef prices remain high in markets like the US.

Matt Dalgleish, a meat industry analyst at consultancy Episode 3, said the pattern of rising prices is expected to continue unless supply increases or demand slows significantly.

While prices may fluctuate with seasonal shifts, he added that the fundamentals—limited global supply and strong demand—remain in place.

Australia Gains Ground as New Zealand Pulls Back

Australia’s ability to meet increasing global demand is aided by an expansion in its national flock over recent years, which has improved supply for processors.

Meanwhile, sheep numbers in New Zealand, traditionally Australia’s closest competitor in the global sheep meat trade, have declined annually since 2012.

New Zealand farmers attribute part of the decline to grazing lands being repurposed for pine plantations that generate carbon credits.

Together, Australia and New Zealand account for over 80% of the world’s sheep meat exports, based on figures from Meat & Livestock Australia.

With New Zealand’s output stagnating, Rabobank analyst Angus Gidley-Baird says Australia is now better positioned to meet any further global increases in demand.

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