STRONG export demand, tight global supplies and a better season combined for a stellar 2009-10 financial year for lamb producers.
Demand for lamb defied a persistently high Australian dollar to see exports - both volumes and values - increase and saleyard prices lift.
"Strong export demand, buoyed by declining global lamb supplies, was more than sufficient to combat the high Austrailan dollar," Meat and Livestock Australia sheepmeat analyst Kara Tighe said.
The Australian dollar averaged 17 per cent above 2008-09 at US88 cents, she added.
But while exports were up 1 per cent overall, volumes to some key markets slipped, with US shipments easing 3 per cent to 24 per cent of total exports.
However, this was partly offset by shipments to the Middle East which increased a further 10 per cent due to the resilience of the region's economy and rising consumer spending power, Ms Tighe said.
Other markets to increase their orders included China, the European Union, South Africa, Canada and south-east Asia.
Strong demand filtered down to the saleyards where prices for 2009-10 were well ahead of the previous financial year and the five-year average.
According to MLA, heavy export lambs commanded rates 6 per cent higher, trade lambs values were up 9 per cent and light lamb values rose 18 per cent.
Higher rates, however, didn't deter restockers who returned to the rails in droves and lifted their rates 25 per cent to compete.
Slaughter figures were back 5 per cent for the fiscal year to April, to 16.6 million head, creating further competition between processors and restockers.
Charlton lamb producer Greg McGurk said record lamb prices were just reward for those producers who had stuck the past 10 years of drought out.
"These prices might help to keep people in the stock industry and convince some younger people to pursue farming," Mr McGurk said.
"Hopefully we see more younger farmers take up farming and we don't lose our skill base - that's what's most important."
