Elders Ltd. has released its winter 2025 outlook for the sheepmeat market, highlighting significant developments in the industry. The report notes that abnormally dry conditions in major sheep and lamb producing areas south of Dubbo, New South Wales, led to an early turnoff of lambs, driven by a scarcity of stock water and tightening fodder supplies. Consequently, lamb prices initially underperformed but saw a strong recovery by the end of autumn as processors faced challenges in filling kill schedules. Improved seasonal conditions in southern Western Australia have eased supplies, contrasting sharply with the same period last year when over 400,000 sheep and lambs were transported east for processing. A heavy flock liquidation resulted in mutton being heavily discounted compared to lamb. However, strong processing margins for mutton have spurred demand, leading to a faster improvement in mutton values and narrowing the mutton discount from around 50% to approximately 30% through autumn. Despite rising prices, export demand for sheepmeat has remained robust, with noticeable shifts in consumer preferences. Price-sensitive markets like Iran have increasingly favored mutton over lamb, while demand from China is beginning to recover after a slowdown in 2024. Additionally, the US market continues to show strong demand, consistent with elevated prices in the entire US meat protein sector.