Australian sheep meat exports pulled back materially in March 2026, with total combined lamb and mutton shipments reaching 42,656 tonnes, down 24% year on year and 6% below the five-year average.

MENA flows contract sharply

The most significant shift in March occurred across the Middle East and North Africa. A broad-based reduction in access, with flight and shipping routes severely restricted due to the Iranian conflict, resulted in sharp falls in shipments across the region. Lamb exports to the UAE were 55% below the five-year average for March, Qatar was also down 55%, and Jordan declined 44%. No lamb was shipped to Bahrain during the month. Mutton flows showed a similar pattern: Saudi Arabia was 49% below the five-year average, Oman was down 87%, and Kuwait declined 25%.

The MENA region’s share of total Australian sheep meat exports fell from 17% in February to around 13.5% in March.

The US provides a degree of offset

The United States was the standout performer, with shipments reaching 8,825 tonnes, up 21% year on year and 15% above the five-year average. The US market continues to grow structurally for higher-value lamb cuts, supported by strong consumer demand and limited domestic supply. This consistent growth is helping to stabilise the broader export program, partly offsetting weakness in other regions.

China moderates but remains the largest destination

China recorded 9,513 tonnes in March, down 27% year on year and 17% below the five-year average, though it remained the largest single country destination for the month.

Global lamb prices increasingly divergent

Australian lamb prices have risen around 47% year on year, pushing trade values close to 1,100c/kg cwt. This still places Australia in the mid-range globally. US domestic lamb prices are above 2,100c/kg cwt, driven by reduced local production and strong consumer demand. New Zealand prices remain in the 800-900c/kg cwt range, keeping it competitive as the lower-cost export supplier. UK and EU finished lamb prices are typically well above 1,500c/kg cwt, reflecting structurally tighter supply chains and strong domestic consumption.

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