AUSTRALIA'S dwindling sheep flock has taken its toll on the lucrative live-export trade, with the number of animals shipped so far this year down by a third.
Just 884 sheep from Victoria were exported live during May, a sharp drop from the 26,000 head shipped in the corresponding month last year.
Australian Bureau of Statistics data shows that in the first five months of the year, 1.08 million sheep were shipped from Australia, compared with 1.6 million for the same period last year, a drop of 33 per cent.
In May last year, 25,823 Victorian sheep were exported, significantly less than both May 2008 (39,368 sheep) and May 2007 (45,620 sheep).
Western Australia has felt the brunt of the downturn, with the state's live exports during the first five months of this year down by half. Just 631,000 sheep were sold, compared with 1.22 million during the corresponding period last year.
"Because of a combination of (high) prices and lack of supply, markets such as Saudi Arabia are looking for sheep elsewhere, like North Africa," Meat and Livestock Australia market analyst Sylvia Athas said.
"Our mid-year forecasts for live exports (the remainder of the year) point to lower levels than recent years."
Last financial year, Kuwait was the largest importer of live sheep from Australia, followed by Bahrain, Saudi Arabia, and Jordan.
John Edwards, Australian livestock export manager for Saudi Arabia importer Al Jabri, said lack of supply in Australia was forcing Middle Eastern buyers to obtain their protein from other countries and from other animals.
"Supply is the real problem," he said. "There are certainly competitors for the Middle East market - sheep come in from Somalia and North Africa.
"All importers in the Middle East are casting the net wider for alternative proteins.
"Australia is not pricing itself out of the market - but maybe the Middle East are buying less or buying other proteins, like fish, beef or chicken."
Last financial year, Australia exported 3.5 million live sheep to the Middle East, down from 4.2 million in 2008.
According to Mr Edwards, shipments are expected to total 3.1 million this financial year.
"Also, because of the supply situation, the market has had to accept lighter and younger sheep when traditionally heavier sheep (went onto the boats)," he said.
According to MLA, sheep and lamb exports to the Middle East region performed strongly last financial year, with lamb volumes up 10 per cent to 33,410 tonnes shipped weight and mutton back just 5 per cent, to 46,202 tonnes.
