Tuesday, 05 November 2019 06:55

Lamb on a roll

Written by  Sudesh Kissun
BNZ economist Doug Steel. BNZ economist Doug Steel.

Lamb prices hit an all-time high of $8.60/kg early last month.

BNZ economist Doug Steel says prices are more than 27% above their five year average for this time of year.

“Prices have been very strong over recent weeks as we pass through what is the typical seasonal peak period before new season lambs come through in volume. 

“But there is more to it than just seasonal strength, with lamb prices hitting an all-time high above $8.60/kg in early October.”

For the season ending September 2019, average lamb prices hit a record $7.60/kg - only 20c above the record set last season but significantly higher than the five year average of $6.00/kg.

Steel expects sheepmeat demand to remain high. China remains the key, with a very sharp lift in the share of NZ sheepmeat exports heading there in recent times.

Meat Industry Association chief executive Tim Ritchie says over 50% of sheepmeat exports are heading to China this year. He says sheep and beef exports to China are booming because of the misfortune of the pork industry, under attack from African swine fever virus.

But Ritchie says NZ lamb exports to other Asian countries are also on the rise.

“It’s the beauty of having many doors open around the world: it’s all about market access,” he told Rural News.

He says there’s nothing in the horizon to suggest that lamb prices could fall.

More like this

NZ lamb chopped by UK supermarket

The NZ meat industry’s challenges in the UK have increased with UK retailer Waitrose planning to source all lamb from only British producers.

Featured

In for the long haul

The coronavirus epidemic is going to have a bigger impact than people think it is, according to Massey University Professor of Agribusiness, Hamish Gow.

Coronavirus situation ‘dynamic’ – SFF

Silver Fern Farms is giving weekly reports to its suppliers to keep them abreast of what it describes as a ‘dynamic situation in China and one that could change very quickly’.

 

Southern treasure or trash?

A man who bought an opencast Southland lignite mine 18 years ago no longer sells the coal for fuel, but sings its praises as stock food, fertiliser and soil conditioner. 

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Biased?

Your old mate was disappointed, but not surprised to see a ‘study’ out of Otago University – quoted all over…

A dilemma

Your canine crusader reckons the fiercely anti GE, but pro sustainability Green Party has a dilemma on its hands, following…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter