Lamb slaughter (MLA’s NLRS weekly slaughter survey data) also

ran higher in May as growers responded to the attractive prices on offer.

The eastern states trade lamb indicator averaged 468¢/kg in May, 26pc higher than that of a year earlier (MLA’s NLRS).

The Middle East continued to grow as a market for Australian lamb, with exports up 43pc on that of the previous year, to 3,397 tonnes swt.

The significant growth was due to continued strong retail demand across the region as well as importers opting for lamb while Australian mutton supplies remain scarce.

Exports to the UK also rose, up 23pc year-on-year to 843 tonnes swt, with the exchange rate reportedly having an impact upon shipments.

The $A has appreciated 13pc since the start of the year against the $US, and 20pc against the yen, but only 5.5pc against the UK, making Australian product relatively attractive to UK buyers.

Lamb exports in May declined to other major markets, falling 7pc in the US to 3,268 tonnes, by 22pc to 850 tonnes in Japan and down 10pc to 1,382 tonnes in China.

The combination of high prices, the appreciating $A and existing stockpiles of product in some of these markets dampened demand.

Exports of mutton declined for the month, back 15pc to 11,652 tonnes swt, with tight supplies and strong competition from live exporters making it difficult for processors to source sheep, contributing to mutton prices reaching record levels during the month.

Mutton prices averaged 254¢/kg cwt in May, 34pc higher than those a year earlier.