Lamb prices sky rocket as supply shrinks
May 4th, 2009
Those farmers who have stuck with sheep are reaping some consolation from the strangulated lamb supply born in spring 2008 as prices rocket up accordingly. Rabobank’s latest Agri-business review indicates lamb volumes processed are now 1.2m behind the same period last year or 9% , with the bulk of the drop coming from the South Island. The report notes, “The further 2% lift in prices over the past month also reflects very tight supply. Farm prices have been maintained at around $5kg over the peak processing season.”
Prices for lamb now sit around 50% higher than this time last season in the North Island, and more than 80% higher in the South Island. Rabobank estimates January export totals told the story of reduced supply. “However, export value increased 12%, or by $32m for the month as the lower NZ dollar also plays a role.”
Meanwhile, David Carter says meat companies are operating plants at full capacity to cope with demand for sheep meat on world markets, helped by a pick-up in animals which has been held back to add weight. However, he warns supplies are likely to fade in the next two weeks, reflecting the lingering impact of last year’s drought. This suggests works will begin reducing staffing and throughput in the next month.
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