LAMB | Lamb space still jammed, but holes appearing

Bookings in front are sliding and holes are expected to be evident in the kill after the two short weeks over Easter. This will especially be the case if it rains again between now and then. Some winter lamb contracts have also been released which, along with some rain, is providing some confidence in the lamb market going forward. One contract has a minimum price of $4.90 in June, rising to $5.50 by September. It's now much more certain that we've hit the bottom of the price slide and one North Island company has already lifted its schedule.

China strong on bone-in items

NZ mutton exports have skyrocketed on the back of increased North Is slaughter rates with Feb exports totalling 14,100 tonnes, a 75% increase on last year. Strong demand from China has seen them take over half our Feb mutton supplies and despite these volumes, prices have remained fully firm. Chinese purchases have included decent quantities of lamb and mutton bone items which are used in hotpots. This has improved NZ exporter profits as in the past many of these items would be worth virtually nothing with much of it turned into meat & bone meal or rendered.