Monthly Market Insights
May / June RECAP
Welcome Angel Bay Distributors, to your new one-stop-shop webpage dedicated to providing you with current market insights on beef and lamb nationally and internationally, with a focus on shipping freight and pricing trends.
Our goal is to provide you with timely and accurate information on the latest market trends, pricing, and shipping issues affecting the beef and lamb industry. Stay ahead of the game and make informed decisions with the help of our market insights.
Lamb Export Update
RECORD VOLUMES EXPECTED AMIDST MARKET CHALLENGES
Key Points:
1. Lamb export volumes are projected to reach record highs in 2022-23.
2. China and the United States remain the largest sheep meat export markets.
3. Exports to China are expected to moderate, while lamb exports to the United States may be impacted by economic conditions.
4. Global demand for meat is fuelled by income growth, urbanisation, and shifting consumer preferences towards high-protein diets.
Lamb exports are set to break records in the coming years, driven by increased production volumes and rising demand from new and emerging markets. Industry projections predict the 2022-23 period to witness a rise in export volumes.
Countries like Papua New Guinea, the Republic of Korea, and Malaysia are predicted to offset the decreased demand in traditional markets like the United States.
Market CHALLENGES
1. Price-conscious consumers and a poor economic outlook in advanced economies are creating obstacles that will affect demand and market growth.
2. The United States, one of the largest export destinations for lamb, is expected to face economic headwinds that could deter consumers from purchasing high-grade meats like lamb.
3. Rising inflation rates and higher interest rates in countries that are already struggling with inflationary pressures could create an added strain on consumer budgets, leading to a decline in demand for premium meat products.
Trade Relationships
Despite those obstacles, the long-term outlook for lamb exports remains positive. As economic conditions improve, consumption is expected to rise steadily. Being a high-end product, lamb has found a niche market in high-end restaurants and consumer households globally.
New Zealand and Australia are actively forging stronger trade relationships with emerging markets, especially in Asia. Allowing them to take advantage of increasing income levels, urbanisation, and adapting consumer preferences.
While challenges persist, the sheep meat industry remains optimistic about the future. Uncertain economic outlooks are commonplace in any export market, and so despite challenges lamb exports are positioned correctly for continued success in the global market.
Past month's market updates and insights can be found here.