Imports rise 20% while exports increase by 7% in 2025

The European sheep meat market has experienced notable shifts in 2025, with increased trade activity despite declining production in key regions. This trend is marked by a substantial rise in imports and exports, reflecting the dynamic nature of the market.

Production Challenges

Sheep meat production has seen a year-on-year decline in several major European countries. Ireland, France, Greece, and Spain reported decreases in production, attributed to structural challenges and disease issues. Ireland, in particular, faced a significant 14% drop, while Spain, the leading EU producer, experienced a 3% decrease. Conversely, Romania saw a dramatic 206% increase in production due to extensive culling following a disease outbreak.

Stable Prices

The EU reference price for sheep meat has remained relatively stable, averaging 748 pence per kilogram (EUR 8.55) for the week ending 28 September 2025. Although prices have declined by 12% compared to the previous year, they have shown stability since the beginning of the year, with slight seasonal increases in April. German prices have reached their lowest this year, influenced by diminished demand and increased seasonal supply.

Trade Dynamics

The EU's import of fresh and frozen sheep meat surged by 20% in the first seven months of 2025, totalling 99,400 tonnes. The United Kingdom and New Zealand were the primary suppliers, contributing 46,600 and 45,400 tonnes respectively. This increase in imports is driven by robust demand and supply chain adjustments.

On the export front, the EU shipped 16,400 tonnes of sheep meat, marking a 7% rise from the previous year. Algeria emerged as the largest export destination, with heightened demand due to adverse weather conditions affecting local production. However, exports to the United Kingdom decreased significantly by 41%, which can be attributed to weaker domestic demand and reduced availability within the EU.

These developments underscore the evolving landscape of the European sheep meat market, highlighting the interplay between production challenges and trade opportunities.

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