THE world has fallen in love with Australian lamb.

For the first time Australia exported more lamb than it has eaten domestically.

Preliminary estimates for September indicate between 53-55 per cent of lamb production was exported.

And year-to-date figures show 49 per cent of lamb has gone overseas, with the MLA believing the result will be close to a 50-50 split between export and domestic sales.

Meat and Livestock Australia sheepmeat analyst Robert Barker said the lamb industry was clearly part of a global market.

"If you are a producer, the more markets you have bidding for your product, the better," Mr Barker said.

"We also have a very strong domestic market for lamb.

"Strong export and domestic demand means risk diversification for lamb."

Lamb exports are up 7 per cent this year. Ironically, it comes at a time when production to the end of September was down 1 per cent on last year.

Mr Barker said the MLA's promotion was designed to ensure lamb sales opportunities to the highest-price market.

But the range of lamb weights produced meant producers had the opportunity to turn off stock for different markets, whether domestic or export.

Helping Australia's stellar lamb export performance has been a less than ideal production season in New Zealand.

A cold snap last spring wiped about one million lambs from its production base, and New Zealand exports from January to August were 13 per cent lower than the previous year, and the smallest in a decade.

Australian lamb had filled some of the gap, Mr Barker said.

Burgeoning export demand had also picked up softening domestic sales, with retail prices "uncomfortably high".

"There certainly was resistance to higher lamb prices, both at retail and in the food service industry," Mr Barker said.

Sheepmeat Council of Australia president Kate Joseph said lamb's export success story was good news.

"It's fantastic, especially when you look at the price of the Australian dollar."

Ms Joseph said a 50:50 mix of domestic and export sales was "probably the perfect mix for the lamb industry".

"I think if Australians want the good quality lamb that the rest of the world loves, they will have to pay for it," she said.

"We don't want to see the day that Australians can't afford our national dish, but we have to be paid for the quality we produce."