THE mutton market's amazing price run is set to continue as exporters look for stock to fill Middle East orders.
June's monthly record average price of 414c/kg carcass weight was up 41 per cent on the corresponding month last year and 8 per cent up on May.
And according to Meat and Livestock Australia, the good times are here to stay.
In its monthly analysis of the sheep and lamb industry, MLA chief sheep analyst Kara Tighe said prices were destined to remain good.
"Supply driven pressure on sheep prices is expected to continue through July with the approach of Ramadan (in August) likely to boost Middle East demand for both mutton and live exports," she said.
It's just another reason why Australian sheep producers should be thankful for the strength of Middle Eastern demand, which has driven prices for many months.
While saleyard numbers crash, processing volumes dive and prices rise, the Middle East has secured the numbers it needs.
For the first three months of this year, when compared to the same period last year, total Australian mutton exports to the rest of the world were down 26 per cent.
But on a closer inspection of the figures, mutton exports to the Middle East lagged just 3.45 per cent.
Of the smaller volume of mutton available, the Middle East is taking a greater share, up from 35 per cent two years ago to 41 per cent this year.
Other customers can't match the momentum of the Middle East.
Mutton exports to South Africa declined 81 per cent; Papua New Guinea took 70 per cent less; the EU's intake reduced 68 per cent while Japanese importers bought 50 per cent less.
But not only is the Middle East taking more of our mutton, it is prepared to pay for it.
In the first three months of this year, mutton exports to the Middle East were valued at $54 million, making it our biggest customer in not only volume but in value.
Mutton exports to South East Asia were valued at $16 million, followed by China, Hong Kong and Taiwan ($11 million) and the US ($9 million).
Federal Government figures show that 42 per cent of mutton exports left Australia as a whole carcass last year.
Export statistics are one thing, but the full impact of mutton exports are being felt in the saleyards, by both processors and producers.
Records continue to be set, and while mutton prices fell slightly last week, saleyard indicators are still hovering about 410c/kg. The Victorian mutton indicator closed at 434c/kg last week.
