Are you being free?
Market Morsel
The free trade agreement (FTA) struck with the United Arab Emirates (UAE) appears to be showing some good early results for the lamb trade from Australia with October export volumes up by 43% over the month to see 2,669 tonnes of Aussie lamb exported to the UAE and this is before the FTA comes into full effect in 2025. Compared to October 2023 these volumes are 22% higher and a look at the five-year average flows for October highlight that current flows to the UAE are nearly 62% stronger.
Total lamb export volumes haven’t shown the vigour of the UAE market though with the trade flows during October nearly 3% softer than the September figures. There was 26,673 tonnes of Aussie lamb shipped offshore during October and while this was the second weakest monthly flows all year it still represents trading volumes above the five-year average trend. Compared to the October average, based on the last five years trading, the current flows are still 5% higher, but they are nearly 13% below the levels of lamb exported during October 2023.
Sticking to the status quo was the order of the month when it came to the top lamb trade destinations for Australia.
USA – saw the lamb trade volumes mostly head sideways with just a 2% decline noted during October to see 6,629 tonnes swt exported. While relatively stable the lamb volumes shipped to the USA still represent levels that are 15% above the five-year average flows for October.
China – demand for lamb remains somewhat in the doldrums running at levels that are nearly 34% below the five-year average trend, reflective of a struggling Chinese economy and weak consumer sentiment. There was 3,766 tonnes of Aussie lamb reported shipped to China during October, which like the USA was a 2% decrease on the levels shipped during September.
The others – Trade to the other export destinations (excluding the USA and China) was above average, but also stable. There was 16,277 tonnes of Aussie lamb exported to the other destinations during October, a 3% decline on the previous month’s trade. Compared to the five-year average for October the current volumes shipped are nearly 17% stronger, but running 14% below the levels seen in October 2023.
