Australian lamb exports are forecast to lift 4.7% in 2012-13, according to the latest Rural Commodities Wrap from National Australia Bank (NAB).
Continued tight global supply and increased Australian production is expected to support this growth, however, it is likely to place further pressure on declining domestic lamb prices.
While export volumes of Australian lamb are expected to remain robust in 2012-13, export prices are likely to come under pressure, as the weakening economic outlook in a number of key trading partners continues.
Exporters are also likely to face increased global competition, as shipments from New Zealand are diverted towards other markets given the soft outlook for the Euro-zone countries.
The Australian sheep flock is set to continue its expansion through 2012-13 to reach 81 million head, underpinned by a 4.1% increase in production following excellent seasonal conditions in previous years.
However, prices will continue to be challenged, forecast to fall 1%, with the heavy lamb indicator averaging 465¢/kg.
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