ENGLISH sheep meat exports have continued to grow in the first six months of 2004.

The English Beef and Lamb Executive says the growth was achieved despite the simultaneous challenges of limited supplies, weaker demand in the most important markets and a more difficult exchange rate position.

Notwithstanding some recent decline in lamb values, this has helped maintain slaughter prices.

Latest figures from Eblex put UK sheep meat exports over the January-June period at 32,600 tonnes, about half of that coming from English-based exporters. This is a rise of just over 4pc on the previous year and an increase of almost exactly a third on 2002.

"The rate of year-on-year export expansion has clearly slowed from that achieved in the first half of 2003, reflecting the very much more challenging trading conditions," said Jane Connor, MLC sheep economics manager.

Overall, UK lamb availability in the half-year was down by about 2pc on 2003. At the same time, demand in the principal French export market was very flat and sterling's progressive strength against the euro substantially reduced competitiveness, most notably with Spain and Ireland, which provided stiff competition at certain times.

The continued rise in export volumes to France, which has seen three consecutive annual declines in sheep meat demand, was particularly heartening.

Although the French are spending less on food in general and on meat in particular, encouragingly for exports, French domestic lamb slaughterings were down 4pc over January-June, leaving the door open for English lamb to continue its post-foot-and-mouth export ban recovery to a commanding position on European consumers' plates.