MELBOURNE, Oct. 6 (Xinhua) -Australia will need 22 million more sheep to keep up with the demand for lamb, one of the country's foremost banks has warned.
With the demand for lamb in Asia and the Middle East growing, Australia's ability to meet demands has been cast into doubt.
Twenty-two million more sheep were needed by 2040 to keep up with demand in the wake of alarming livestock data released in September, Mark Bennett, head of agribusiness for the Australia and New Zealand Banking Group, said.
Meat and Livestock Australia revealed last month that a nationwide drought had taken a heavy toll on Australia's sheep population.
Between 2013 and 2015, the number of sheep in West Australia shrank by 20 percent in the state's southwest and 31-41 percent in the north and east.
In the same time period, lamb production in New South Wales and Queensland declined by 41 percent.
Bennett said he believed the necessary growth could be achieved if existing sheep farmers partnered with outside investors.
"Really there's a lot of livestock infrastructure that's been lost to the landscape over the last 20 years to 30 years, like fencing, yards and sheds," Bennett told the Australian Broadcasting Corporation (ABC) on Thursday.
"There will be investment from outside the sector, and it's attractive to new investors as well because the capital outlay for sheep farming compared to cattle for example is less, but still has the opportunity to produce a decent return."
But Bennett said the difficulties associated with farming sheep was turning prospective farmers away.
"Sheep are a headache to deal with. A lot of people just don't like dealing with sheep and if they can crop and make money they'll do that instead," he said.
Angus Brown, an analyst for livestock analysis firm Mercado, said lower sheep numbers was being reflected in sale yard prices.
"The lamb supply is definitely tighter than what you'd normally see this time of year, especially compared to last year," Brown told the ABC on Thursday.
Australia currently has 70 million sheep, more than any country except China and India.
