Recent figures from MLA revealed Australia's lamb exports in May were at their highest level in three years.
And the United States continues to be Australia's largest export customer for lamb, importing 7201 tonnes in May - a 9 per cent increase year-on-year.
In fact, total lamb exports increased by 3pc year-on-year in May to 26,691 tonnes.
The largest shift in the market was the rapid increase in exports to Papua New Guinea which imported 2692 tonnes in May.
This represented a 229pc increase year-on-year and makes PNG the third largest destination for Australian lamb in May.
"That's a really good result, and it's telling us that there is plenty of global demand for lamb," Robert Herrmann, Managing Director of Mecardo said.
"The export value has really spiked up because we have strong prices and we have strong export numbers.
"It is signalling that as we come into the end of the 21-22 lamb season, we are going to have a pretty clear deck going into the new season lamb.
"New season lamb price will generally be driven by where we end up in the winter. Normally we see the winter prices spike up and that would be our expectation leading into when those first lambs first start to arrive in northern markets of Dubbo and alike."
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Mutton volumes have also increased, with Australia exporting 57,577 tonnes of mutton so far this year - a 7pc increase from 2021.
In May, 11,554 tonnes of mutton was exported, a 22pc increase year on year.
China was the largest market in May, importing 4332 tonnes. This is a 41pc increase year-on-year and made China the destination for 38pc of Australian exports in the month.
Much of the increase was seen through large increases to smaller markets such as Egypt, Thailand and Canada.
In particular, the Middle East/North Africa region saw large increases in export volume from individual markets that contributed to a large volume increase overall.
Exports to Oman were 205 tonnes up from zero in May last year, while the UAE, Qatar and Saudi Arabia recorded increases of 207pc, 163pc and 65pc respectively.
This contributed to an overall increase in export volume of 121pc for the month to 1642 tonnes.
"If you compare mutton with lamb - exports of lamb to China have been down, but exports of mutton have been higher," Mr Herrmann said.
"That's telling us that there's a pretty strong appetite for mutton, and it's also supporting prices.
"By and large, producers should be pretty happy with the situation with sheep and lamb at the moment."
