The value of Australia’s sheepmeat industry is expected to surpass a new record of $5 billion by the end of the fiscal year.
On top of this, sheepmeat exports are predicted to reach an all time high of $4.4 billion.
This is according to the latest Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) 2021-22 forecast and outlook report released this week, which clearly outlines the rises are supported by the continuation of high domestic prices and rising sheepmeat production.
Global inflation is expected to ease by the middle of 2022 and global incomes are expected to rise.
As a result, lamb prices are forecast to rise by 5 per cent, averaging 934 cents per kg in 2022-23 while mutton prices are expected to average 678c/kg.
But prices could rise more quickly if global inflation remains high, ABARES said, and by 2026-27 the value of the sheepmeat industry is expected to range between $5.6 and $6.1 billion depending on the path of global economic recovery.
According to the report the rising value of Australian sheepmeat exports is being driven by strong sheepmeat exports to the United States.
Driving the exports to the US is meat prices rising faster than general price inflation while domestic sheep production remained relatively low.
Between July and November 2021, exports to the US were 45pc higher than the same time in 2020.
Between 2022-23 and 2026-27, the value of sheepmeat exports is expected to continue rising with 2026-27 forecast to be between $4.6 and $5.1 billion.