There were three main contributing factors to the fall:

• Tight domestic lamb supplies.

• The high $A during the first half of 2008.

• The global financial turmoil during the second half of 2008.

Lamb exports for 2009, however, are forecast to bounce back from the lower 2008 volumes, helped by an expected improvement in Australian lamb production, the weaker NZ competition and a lower $A.

In 2008, lamb exports to the US during 2008 fell 17pc year-on-year, to 36,854 tonnes,

The US accounted for just over 80pc of the overall fall in exports.

Lower supplies of Australian heavy lambs, their consequent higher prices in Australia and the impact of the high $A, plus the US economic downturn in the second half of 2008, all contributed to the US decline in lamb imports.

Australian lamb exports to the the Middle East grew 14pc year-on-year, to 25,370 tonnes, despite the inflation gripping the Middle East, and those Middle East currencies pegged to the $US losing their purchasing power.

The Middle East was one of the few regions to record an increase in lamb exports oin 2008.

The strength of the underlying demand in the Middle East was robust enough to overcome the high $A and market volatility, with lamb supply from Australia being the main factor limiting further growth there through the year.

While lamb exports to China were strong during the first half of 2008, the impact of our high $A and the global financial crisis became evident from June onwards.

This led to a rapid decline in shipments over the final six months of the year.

Lamb exports to China during 2008 totalled 14,040 tonnes – 3pc below those of 2007.

Lamb exports to the EU also fell in 2008, down 9pc, to 11,580 tonnes.

This fall was mainly caused by shipments to the UK dropping 22pc, to 7,280 tonnes, while total exports to other countries within the EU lifted 29pc, to 4,300 tonnest.

Along with the Middle East, other major markets to record a rise in shipments for 2008 included Japan (up 16pc), South Korea (6pc higher), Hong Kong (up 32pc) and South East Asia (11pc higher).