There is a strong foundation for 2017 lamb prices, according to MLA’s market information and industry insights into Australian sheep industry projections for 2017.
With the expectation of tighter supplies in 2017, this should assist markets, as previous lamb market highs also coincided with significantly reduced supplies.
The Australian domestic market is anticipated to remain the largest consumer and account for 48% of production, or 237,000 tonnes cwt, with many encouraging signs coming from the market. For instance, domestic per capita consumption has stabilised in recent years, while at the same time the weighted average retail price has been increasing.
Despite mixed signals from the major Australian export markets, there are still many willing to procure Australian product, while New Zealand lamb and mutton exports are anticipated to fall further. The result may be a fifth consecutive year of higher year-on-year prices, or if not, at least levels similar to those of 2016.
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