Sheep farmers can expect to enjoy high prices for another two years at least, according to a report from the specialist food and agribusiness bank, Rabobank.
The report's author, Rebecca Redmond, says that although European markets will soften, demand in emerging markets in Asia will grow.
She says the main driver for high sheepmeat prices is a lack of supply, mainly because of droughts and competition for land use in several countries.
There has been a "good solid lift" of about 25% or 50% on five-year averages, Ms Redmond says, and the bank expects prices to stay a good 20% above those averages.