Exports of sheepmeat declined again in 2025 in both value and volume, according to new Bord Bia data.

Bord Bia has published its annual Export Performance and Prospects Report, looking back on exports in 2025 and looking ahead to 2026.

The report showed that the value of Irish sheepmeat exports declined for the third consecutive year, to an estimated €360 million.

The lower availability of sheep for processing was identified as the primary driver for the 15% decline in the volume of sheepmeat available for export, which was 51,000t.

This represents the lowest volume of sheepmeat exports from Ireland since 2016.

Looking ahead to 2026, Bord Bia said that continued flock contraction in EU production creates opportunities for Irish lamb, but with increasing competition from imported product.

Exports

Bord Bia's report said that a combination of reduced domestic production, a contraction in breeding flock, and lower levels of live sheep imports from Northern Ireland available for direct slaughter all contributed to the decline in export volumes in 2026.

Reduced production has been noted across all European sheep producing regions, but despite reduced supplies, there has been no associated uplift in demand, with reports indicating that supply and demand were balanced for much of 2025.

The high price point of lamb relative to other livestock continued to negatively impact demand, Bord Bia said.

While the overall volume of Irish sheepmeat exports declined in 2025, there was a slight increase (6%) in unit pricing in the year.

While stronger average deadweight prices for producers are welcome, it impacts the competitiveness of Irish sheepmeat in export markets, according to Bord Bia.

This was particularly prevalent in the first half of 2025, when there was a significant disparity in prices between European and southern hemisphere products.

However, a shifting supply and demand dynamic in the southern hemisphere contributed to a very strong increase in prices in both New Zealand and Australia as the year progressed. This in turn impacted their competitiveness in our closest markets.

The EU market - more specifically France, Belgium, Germany, Italy and the Nordic countries - accounted for 86% of sheepmeat exports, equating to around €310 million in value.

Switzerland remains the primary outlet for Irish sheepmeat outside the EU and UK, with exports valued at €15 million; however, this figure is down by a third since 2024.

The level of trade with Northern Ireland and Great Britain declined in 2025, particularly in the latter market. Higher levels of southern hemisphere imports on the UK market and a growing exportfocus by the UK sheep industry impacted opportunities for Irish products.

Sheepmeat exports to the UK were valued at €30 million, 9% of the total sheepmeat exports.

2026 Outlook

Bord Bia said that, while the tighter supply situation supports higher producer prices, it creates challenges when securing market returns for Irish lamb, particularly where there is competition from both UK and southern hemisphere products.

The report noted that consumers in Europe continue to be highly price sensitive, and this, combined with an ageing demographic of lamb consumers, means that the EU is forecasting a continued decline in lamb consumption.

On a global level, China continues to have a strong impact on the sheepmeat trade due to the sheer scale of the market. New Zealand and Australia are the major suppliers into the market.

However, ongoing economic difficulties are impacting the type and value of sheepmeat being imported. This has encouraged a more diversified export focus for both Australia and New Zealand, with a growing focus on markets in Southeast Asia, the US, and the Middle East.

There have also been growing levels of exports to the UK under newly negotiated trading arrangements.

There is a relatively stable outlook for the Irish sheepmeat sector for 2026, with demand for sheepmeat in domestic and export markets balanced with subdued production levels.

Given the record low levels of lamb throughput in the latter half of 2025, there is potential for a higher carryover of lambs for processing in the first half of 2026, aligning with Eid al-Fitr and Easter in late March and early April respectively.

Globally, sheepmeat supplies are expected to continue to decrease, in line with the production declines forecasted for Europe, New Zealand, and Australia.