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Export potential for organic lamb

Published: 07-Jan-09

Wednesday, 7 January 2009

Australia has the potential to establish an export market for organic lamb, with production expected to grow in the next five years according to a report from the Rural Industries Research and Development Corporation (RIRDC).

Supplying Organic Lamb, produced by the Victorian Department of Primary Industries, estimates that producers can supply about 110,000 organic lambs each year at the moment.

The report has been produced to provide an overview of the potential for growth in this sector and whether it can sustain a future export industry.

The report canvassed the views of producers, processors and other participants in the organic lamb supply chain.

Organic lamb is largely produced in a wide arc from Longreach and Cunnamulla in Queensland, through the western division of New South Wales and the Riverina and into Victoria and South Australia.

The market can be broken into two segments, bulk (making up 90 per cent of the market) and boutique, with the latter largely consisting of smaller producers selling to specialty butchers or through farmers markets and other markets close to major cities.

RIRDC General Manager of Established Industries, Margie Thomson, said the report found evidence that supply could grow.

“This report complements existing information that demonstrates there is potential export demand for organic lamb, particularly from the US, South East Asia and North Asia.

“Organic lamb is less than one per cent of total lamb production in Australia but our position as one of the top three producers and exporters of lamb in the world means we are well placed to expand in future.  This report suggests that industry has the capability to increase production over the next five years, particularly given ‘average’ seasons.

“This has the potential to be a valuable new industry for rural and remote Australia if supply chains can be further developed,” Ms Thomson said.

The report also recommends:

·        Further research into breed characteristics to substantiate meat quality attributes in the future;
·        Encouragement of alliances between smaller producers, purchasers and processors; and
·        Investigation of the viability of finishing farms closer to processing plants.

The report is available at www.rirdc.gov.au.