Sheep Farming in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC A0141Revenue
$3.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
16,537
Businesses
8,765
Wages
$XXX.Xm
Sheep Farming in Australia industry analysis
Variations in turn-off rates and wool production volumes have seen industry revenue fluctuate over the past five years, and fall overall. Farmers have continued to focus on export markets to expand revenue. Demand for wool in the key market of China has recovered from COVID-19 pandemic lows. However, uncertain economic conditions have weighed on prices. Industry revenue is expected to have dropped at an annualised 2.6% over the five years through 2024-25, to $3.4 billion. This includes an anticipated revenue surge of 11.2% in 2024-25, driven by record turn-off numbers and rising sheep and wool prices.
Trends and Insights
- Turn-off rates have accelerated since 2022-23, following successful flock-rebuilding efforts. However, increased supply has weighed on prices, driving revenue to fall. Wool prices have also dropped.
- The lambs for slaughter segment’s revenue share has increased over the past five years. The number of lambs sold to meat processors has reached record levels over the past three years, driven by high turn-off rates.
- The high rainfall sheep farming zone is crucial for prime lamb production. This zone encompasses the coastal areas from Queensland to South Australia, as well as all of Tasmania and southwest Western Australia.
- Sheep farmers face internal competition over the quality of their wool and meat. Wool is evaluated on a number of features, like micron and strength, and meat is graded on its status as grass-fed or grain-fed.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.6 % over the past five years, to reach an estimated $3.4bn in 2024.
Trends and Insights
Volatile weather conditions have caused output levels and prices to fluctuate
- Successive years of drought saw national flock numbers sink over the three years through 2019-20. Subsequent favourable weather conditions reduced turn-off rates and constrained live sheep exports over the two years through 2021-22, as farmers looked to rebuild their herds. Lower supply in 2021-22 substantially boosted lamb prices.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Export markets will be a main driver of industry growth
- Domestic per capita sheep meat consumption is forecast to inch downwards through 2029-30. That’s why sheep farmers will likely focus on export markets to expand growth channels.
Biggest companies in the Sheep Farming in Australia
| Company | Market Share (%)
2025 | Revenue ($short_0)
2025 |
|---|
There are no companies that hold a large enough market share in the Sheep Farming in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Wool, Lambs for slaughter and Sheep for slaughter and live export. Wool is the largest segment of the Sheep Farming in Australia.
Trends and Insights
Improved weather conditions are bolstering the volume of lambs for slaughter
- Lambs are sheep that are under one year old. As lamb meat is regarded to be higher quality than mutton, it’s priced at a premium.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Beef Cattle Farming in Australia
- Dairy Cattle Farming in Australia
- Grain-Sheep or Grain-Beef Cattle Farming in Australia
- Sheep-Beef Cattle Farming in Australia
Complementors
- There are no industries to display.
International industries
- Sheep Farming in the US
- Sheep Farming in New Zealand
- Sheep-Beef Cattle Farming in New Zealand
- Sheep Farming in the UK
- Raising of Animals in Ireland
Table of Contents
About this industry
Industry definition
The industry consists of farms that primarily undertake sheep farming. Sheep are farmed for their meat and wool.
What's included in this industry?
Lambs for slaughterSheep for slaughter and live exportWoolSheep and lambs for breeding and stockingCompanies
Purchase this report to view all major companies in this industry.
Related Terms
STOCKFEEDTURN-OFF RATEMELIOIDOSISIMPUTED WAGEIndustry Code
ANZSIC 0141 - Sheep Farming in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Turn-off rates have accelerated since 2022-23, following successful flock-rebuilding efforts. However, increased supply has weighed on prices, driving revenue to fall. Wool p...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The lambs for slaughter segment’s revenue share has increased over the past five years. The number of lambs sold to meat processors has reached record levels over the past th...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The high rainfall sheep farming zone is crucial for prime lamb production. This zone encompasses the coastal areas from Queensland to South Australia, as well as all of Tasma...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Sheep farmers face internal competition over the quality of their wool and meat. Wool is evaluated on a number of features, like micron and strength, and meat is graded on it...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major players in the Sheep Farming industry. Most sheep farmers earn under $200,000 in annual revenue, and less than 5.0% generate over $2.0 million in revenue e...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Free trade agreements have provided new opportunities for sheep farmers. Agreements in 2015 and 2022 eliminated tariffs on wool in China and India, respectively. In May 2023,...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have fluctuated but increased overall over the past five years. Input costs are expected to fall in 2024-25, and prices for sheep and wool are set to climb, li...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Sheep Farming industry in Australia in 2024?
The market size of the Sheep Farming industry in Australia is $3.4bn in 2024.
How many businesses are there in the Sheep Farming in Australia industry in 2024?
There are 8,765 businesses in the Sheep Farming industry in Australia, which has declined at a CAGR of 1.9 % between 2019 and 2024.
Has the Sheep Farming industry in Australia grown or declined over the past 5 years?
The market size of the Sheep Farming industry in Australia has been declining at a CAGR of 2.6 % between 2019 and 2024.
What is the forecast growth of the Sheep Farming industry in Australia over the next 5 years?
Over the next five years, the Sheep Farming industry in Australia is expected to grow.
What does the Sheep Farming in Australia include?
Lambs for slaughter and Sheep for slaughter and live export are part of the Sheep Farming industry.
How competitive is the Sheep Farming industry in Australia?
The level of competition is moderate and increasing in the Sheep Farming industry in Australia.
