Lamb returns up almost a third in six months
May 18th, 2009
Export figures show NZ lamb and beef prices continuing to strengthen in spite of the difficult global economy. Export lamb returns for the first six months of the export year (October 2008 to March 2009) were up 27% to $8,670 per tonne,compared with the same six month period in the previous year.
Export beef returns, on a similar time comparison were up 22% to $5,420 per tonne. Meat & Wool NZ Chairman, Mike Petersen, says this is a very positive result given the current trading environment. “While there has clearly been a contraction in lamb supply, this industry is producing a top-end, high value-added consumer-ready product, and because of this, we have avoided the commodity slump that has affected many other industries.”
Lamb prices have staged a remarkable recovery in the last year and farm gate returns are nearly 60% higher than this time last year, reflecting the more export friendly NZ dollar value and the continued growth of higher value chilled export sendings to NZ’s key export markets. The current average farm gate price for a 19 kg lamb is about $105 net. Last year lambs fetched about $67. Petersen believes these improvements can be sustained.
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