Australian live sheep exports slipped by just 1pc for the 2007-08 fiscal year, as tighter sheep supplies in the eastern states were offset by a sharp increase in numbers in WA and overall steady demand.

Exports for the year totalled 4.09 million head, valued at $A287 million FOB.

Kuwait surpassed Saudi Arabia as Australia’s main export destination, according to Australian Bureau of Statistics.

Exports to Kuwait for 2007-08 increased 8pc, to 971,969 head, as demand remained firm in the face of higher sheep prices.

In contrast, shipments to Saudi Arabia (948,062 head) and Jordan (288,491 head) declined 34pc and 42pc, respectively.

Exports to the United Arab Emirates slipped 7pc, to 184,243 head.

Alongside Kuwait, growth markets for Australian sheep in 2007-08 included Bahrain, increasing 12pc to 611,100 head.

Volumes to Oman (752,551 head) and Qatar (233,812 head) surged 121pc and 31pc, respectively.