The Middle East has now surpassed the United States as Australia's biggest market for sheep meat and live exports.

Current economic woes and the rising Australian dollar have made the U.S. a less promising market for Australian sheepmeat and live exports. The Middle East is now the bigger market for Australian shepherds.

"What we're seeing is a result of higher incomes for the community within the middle eastern countries," said Ron Cullen of the Sheepmeat Council.

"They are demonstrating an almost insatiable appetite for our sheepmeat product, and they demand our product against some of the other sheep products from northern African countries."

Meanwhile, the Australian Wool Exchange has been forced to raise the prices of its products to pay for more quality assurance programs. Bale pack manufacturers are paying an extra 40 cents for each label which will be passed on to wool growers.

Australian Wool Exchange CEO Mark Grave says the exchange had to pay for more to keep up with demands of local and overseas customers.

"From a quality perspective, the demands are getting higher, the competition from other countries is getting greater," he said.

"So as a country we can't rest on our laurels, we actually have to continue and develop."