A review of the world sheepmeat market: North America, Japan and the Middle East

Abstract

This paper reviews the sheepmeat markets in three importing regions (North America, Japan and the Middle East) over the period 1960-80. These regions form so called 'development' markets for N.Z. sheepmeat exports as much of N.Z.'s traditional trade with the U.K. is being diversified into them. The U.S.A. has a large number of sheep but its production has declined markedly; consumption has followed a similar trend and per capita consumption of sheepmeats is very low. Imports are currently well below levels in the mid 1960's but considerable potential exists for future expansion in the import market. Canada's sheepmeat market is of relatively minor importance but it has characteristics similar to those of the U.S.A. Imports have been quite substantial at times, though have declined recently. In both countries, N.Z. is now the main import supplier. A large and possibly expanding import market exists in Japan for sheepmeat but up until now it has been an erratic purchaser, especially in the mutton market. Changes in consumption are directly transmitted to exports as there is no domestic production. Promotion is needed to expand the market. Imports consist largely of mutton for manufacturing and Australia and N.Z. are the two main suppliers. However, it is possible that N.Z. could capture the growing market for lamb with Australia continuing to supply the mutton market. Finally the Middle East market has developed rapidly since the oil price rise in 1973/74. The main markets are Iran and Iraq while Saudi Arabia, Kuwait and other states also provide lucrative markets. Although it is planned to increase production in the Middle East, the potential for doing so is limited and domestic supply is unlikely to be able to satisfy increasing demand. The outlook is for continued expansion in imports therefore, though the market has a high potential risk due to political instability in the region.