Irish sheepmeat exports performed very positively for the first five months 2016, recording growth of 6%, increasing 1,214t to reach 20,189t.

The lift in exports builds on the positive market performance achieved between January and May 2015 when sheepmeat exports also increased by 12%.

Exports to France have performed better than anticipated after marketing difficulties disrupted normal supply and trade outlets in the latter half of 2015.

Exports to the UK also exceeded expectations and it will be interesting to see if this trend continued in the pre- and post-Brexit period. UK demand was helped earlier in the year by tight supplies of lamb in the British market with weather reducing the drafting rate of hoggets and pushing out finishing date for early born lambs.

High-value markets

While France and the UK continue to hold primary position as our most important export markets on a volume basis, exports to high-value markets have continued to record impressive growth. Exports to Sweden and Germany have grown by 36% and 20% respectively. Growth to these markets has occurred in line with Irish processors investing in and developing an extensive range of value-added products. The capture of Belgium’s largest processing plant, A Lohienne, by Irish Country Meats in 2011 has also come to fruition, opening supply avenues into important EU markets.

Higher kill

Increased exports to EU markets could lead to a suggestion of sales suffering in the home market. Sales have held steady, however, with growth in exports stemming from higher throughput for the first five months of 2016. Up to week ending 29 May, throughput of hoggets increased by 40,120 head to a total of 670,062 hoggets, the ewe and ram kill lifted 29,448 head to 125,726, while processing of spring lambs marginally reduced from 139,665 to 130,360. The majority of this increased throughput occurred during March coinciding with stronger demand for the Easter market.

Trading difficulties

There are not many negatives on an export report that boasts 16% growth in the first five months of the year. One notable area that has come under pressure, however, is Irish sheepmeat exports to Hong Kong, which recorded just 1t of exports compared to 414t for the same period in 2015.

The collapse in this trade outlet combined with the continued Russian ban of EU produce and slowdown in purchasing in some Asian markets, including China, has led to an oversupply of fifth quarter or co-products in the EU market.

A depressed Asian market and lower purchasing of skins and wool has also affected both these markets, with demand for skins at a low level and wool prices reducing by about 40c/kg on last year’s levels.