Exports of Irish sheepmeat were worth over €440 million in 2023, which is a 7% decline when compared to 2022.
This decline has followed the year-on-year growth of these exports since 2014, according to Bord Bia’s Export Performance and Prospects Report 2023/24, which was launched today (Wednesday, January 10).
There were many challenges facing the export of sheepmeat in 2023, including a shift in global demand combined with increased production in the southern hemisphere and a notable increase in the availability of UK sheepmeat in key export markets.
Higher input costs and difficult production conditions affected the quality of lambs presented for processing in 2023, which Bord Bia said contributed to the reduction in the value of sheepmeat exports.
Irish sheepmeat exports
A larger carryover of hoggets into 2023 boosted Irish sheepmeat production in the first half of the year, with the increased supplies putting some downward pressure on the deadweight trade.
Towards the second half of 2023, lamb supplies for processing tightened “significantly” which Bord Bia said helped “keep a floor under the lamb trade”, with prices operating in line with the corresponding period in 2022.
The tighter supplies of lambs for processing in the second half of the year, combined with lower carcass weights, offset the higher production in the first half of the year, the food board added.
The European Union (EU) market remained the primary outlet for Irish sheepmeat, accounting for almost three quarters of sheepmeat exports in both value and volume terms.
Sheepmeat exports to the EU were valued at €325 million in 2023, which Bord Bia said is a 7% decline from the export values in 2022.
Sheepmeat performance
France remains the largest market for Irish sheepmeat, with exports valued at €135 million, back 9% on 2022 levels.
However, Bord Bia said there were declines in the value of exports to Germany, Sweden, Belgium and Italy.
The higher price point of lamb relative to other proteins left it more exposed to the impacts of high levels of inflation in many of our key export markets, the report stated.
Bord Bia offered a more positive note, that key Irish lamb export markets indicated some signs of stabilisation in lamb consumption during the second half of 2023.
Lamb benefits from the important religious and cultural role it holds with EU consumers which helps to provide some stability in overall per capita consumption, which is forecasted to increase by 0.8%.
Sheepmeat exports to the UK were valued at €70 million, a 7% decline from year earlier levels.
Export market share in value terms however has remained constant at 16%.
Exports of sheepmeat to international markets were valued at €45 million, back marginally from 2022 levels.
Exports to Switzerland have held steady and accounted for more than two thirds of all Irish sheepmeat traded internationally.
Bord Bia said there was some growth in the value of exports to Asian markets including Hong Kong and the Philippines, while exports to Canada were more subdued.
Outlook for exports
On a global level, Bord Bia said China continues to have a strong impact on the sheepmeat market due to the sheer volume of product it imports.
Import volumes of sheepmeat into China improved in the second half of 2023, which the food board said is expected to continue into 2024.
However, Bord Bia said it is worth noting that the returns available are “much more competitive” which impacts on the value of the trade.
The US also remains a significant importer of sheepmeat, albeit at lower volumes and values than previous years.
Sheepmeat production in Australia is expected to remain strong in 2024 with New Zealand output also holding steady.
With weaker returns from the Chinese and US markets however, there is potential for more southern hemisphere product to be exported to higher value markets such as the EU and the
UK, which could continue to impact the competitiveness of Irish lamb in these markets during 2024.