Exports are a great source of opportunity for sheep industry
Exports are a major focus of AHDB Beef & Lamb's work in helping improve returns and manage global market volatility for the sheep meat sector in England, writes Clive Brown.
A new report by AHDB Beef & Lamb and the International Meat Secretariat has underlined the importance of making the most of export opportunities in both EU and non-EU markets. The World Sheep Meat Market to 2025 highlights how maximising opportunities for sheep meat with other EU markets while developing fifth-quarter products for non-EU markets will play a vital role for the sheep industry as we move forwards in 2016 and beyond.
The report examines the dynamics of the world sheep meat markets and foresees the factors in the international trade likely to affect our sheep sector over the next few years. While outlining the positive long-term prospects for UK and global sheep meat exports, the report stresses how UK export competitiveness will remain a key issue for the future of the industry.
The UK is an important player on the world sheep meat market. It is by far the largest producer in Europe and the third largest exporter worldwide. However, production developments, which in turn will be influenced by producer profitability, have impacted on export availability in recent years and will continue to do so.
Sheep farmers will be keeping a keen eye on currency movements in particular, as this has a significant effect on our competitiveness within the crucial EU market, particularly France. A correction of the overvalued sterling would be welcomed by most in the sheep sector and may be well overdue.
Although we rely heavily on the European market, equally important will be exporting products for which there is little demand in Europe to markets where they are valued. Many of these products are in greater demand in a number of non-EU countries. These exports help maximise use of the carcase and therefore boost returns for the UK supply chain.
In terms of supply, exports of New Zealand lamb are unlikely to increase in the long term, although the growth taking place in Australian exports could well continue. The global supply situation will be tight, especially if demand continues to grow as predicted, suggesting a positive outlook for prices and putting the UK in a good position to increase its trade both within and outside of the EU.
As we start 2016, we look forward to making further progress with our export strategy to help the UK sheep industry compete on the global stage.
* Clive Brown is AHDB Beef & Lamb's head of regional development
