HIGHER lamb exports to Australia's major customers are expected this year.
Lamb prices are expected to remain stable and production is forecast to rise by 6.4 per cent to 424,000 tonnes.
The US, the Middle East and China are expected to increase their demand for lamb by 7-11 per cent.
Meat and Livestock Australia's mid-season update was released on Monday. Chief economist Tim McRae said export growth would help lamb values this year. MLA is predicting the China market for sheepmeat will grow 11 per cent this year, on the back of a 15 per cent growth rate last year.
This will take the volume to this region up to 32,700 tonnes.
China is catching up to Australia's two traditional big lamb customers - the US and the Middle East.
"We were saying today that it will be a toss up this year between these three customers and it will be a three-way battle to see who takes the most," Mr McRae said.
Last year the US took the lowest amount of lamb since 2004. Volumes to the US are expected to rise 7 per cent this year, Mr McRae said, with the prediction based on import forecasts from the US Department of Agriculture.
New Zealand's inability to fill its EU quota last year is also expected to have a positive impact on the amount of Australian lamb going to the US, as New Zealand opts out of some of its US marketing to concentrate on the higher value EU trade.
The Middle East, which last year took the most Australian lamb, is expected to increase its take by 7 per cent.
Mr McRae said the organisation was confident in its estimates, especially of export growth.
"The feedback we get from customers is optimistic and the amount of lamb they are taking is supply constrained," he said.
Meanwhile, domestic lamb consumption is expected to remain steady in the coming year.
Last year, Australians ate 51.5 per cent of the national lamb production.
Woolworths remained the biggest seller of Australian lamb with 29.9 per cent sold through its stores. Butchers sold 28.3 per cent while Coles came in third at 21.3 per cent.
