SHEEP farmers in the UK are struggling with slender margins, but on the other side of the world, Meat and LivestockAustralia reports that producers are enjoying boom times.
Returns to specialist prime lamb producers down under remain at historically high levels, with an estimated 19percent rise in average farm cash income in 2004/05 of A[dollars]62,000 ([GBP]25,200), 77percent higher than the average of the previous 15 years.
In its mid-term review, MLA states: "Prospects for the prime lamb industry remain buoyant, driven by the strong export and domestic demand and tight global supplies. However, drought continues to hinder efforts to expand the industry, causing lamb prices to remain at extraordinarily high levels."
Although now slightly down on 2004, Australian lamb prices are still 130percent higher than just five years ago.
The vagaries of the climate can have a quite dramatic effect on the fortunes of sheep and cattle producers in Australia. The June census of 2003 revealed that the national flock at 99.25 million was at its lowest level for 56 years. Since then there has been some recovery and the latest estimate puts the flock at 103.6 million.
The total flock is forecast to reach 110 million by 2009 - less than in 2001 and an astonishing 60 million below the peak of more than 170 million in 1990.
The number of lambs reared in Australia per ewe is low by UK standards and it is expected that just 16.5 million will be slaughtered next year, with an average carcase weight of 21 kilos - with a further 11.2 million older sheep being processed at a similarweight.
Wool remains a major component of the industry. Of the total flock just over 50percent are breeding ewes, with the balance being older sheep kept forwool production.
The export market is hugely important, and concern over BSE in beef from the US has boosted trade with a range of countries in the Far East.
In total, Australia is forecast to export 130,000 tonnes of lamb this year, an increase of 17percent on 2004. North America is the largest market and regularly accounts for 40,000 tonnes a year. Further expansion is likely as US sheep numbers decline.
China appears to be another promising market, with exports jumping by 45percent last year to 9370 tonnes, and a further 40percent in the first seven months of this year.
Live exports are vital, particularly to the Middle East. In 2001 live exports reached 6.8 million head, with more than 2 million shipped to Saudi Arabia.
Total live exports in 2004 fell to 3.4 million, when the Saudi government imposed a ban on health grounds. Business has since resumed and total exports next year are likely to exceed fourmillion.
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