Tuesday, 26 September 2023 09:55

More pain yet!

Written by  Peter Burke
A flood of Australian sheepmeat is coming into export markets, which is dragging down the price. A flood of Australian sheepmeat is coming into export markets, which is dragging down the price.

China's slower than expected recovery from Covid-19 and an oversupply of Australian sheep meat is causing problems for NZ sheep farmers.

Rabobank’s senior agricultural analyst Emma Higgins says there is more pain to come before things start to settle down.

“The sheepmeat price schedule has come below the bottom of the five year price range, so it’s a bit more tricky there with some really tough market settings in the coming months.”

“They have had good lambing percentages and are now being warned about a possible dry summer.”

On the flip side, Higgins says there is some good news on the beef front with some stabilisation coming through in terms of farm gates prices in NZ. “In the last month these have started to track upwards due to the price of beef lean trimmings starting to lift in export markets.”

She adds that with milk production in NZ declining, it should mean that the schedule price will follow the normal season trend in the coming months.

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