The North Island kill is already well advanced this season due to drought conditions and the expected shortage has become apparent very quickly. Farmgate prices began to lift in the North Island last week as procurement pressure ramps up. There has been a wide variety of prices on offer for works lambs. Export lamb prices ranged from $4.35-$4.50/kg (gross incl. pelt/presentation etc) last week. Local trade prices were around $4.60/kg and up to $4.65/kg on an 'all weights & grades' basis. Some supply contract prices also kicked in at around $4.80/kg. South Island farmgate prices remain flat with better numbers of lamb coming forward for kill there.

Store lamb prices still under pressure

After rallying strongly a couple of weeks ago store lamb prices, particularly in the North Island, faced further downward pressure last week. The number of store lambs hitting the market has lifted as the autumn progresses and many regions are still very short of feed. Feed conditions are also limiting demand. Big yardings of lambs at Feilding (64,000 head in 2 weeks) and other yards were too much for the level of buyer interest and prices have slipped back to around $1.70/kg for 30-35kg males lambs in the North Island