Both beef and lamb schedule prices in the North Island are under pressure at a time when prices are typically on the rise.  

More than a third, 36%, of farmers expect the agricultural economy to worsen in the next 12 months, according to a June quarter confidence survey by Rabobank.

When LFTB or "pink slime" was taken off the market (a substitute for lean beef) end users had to fill the void. Demand for US domestic fresh soared

Federated Farmers is welcoming Beef+Lamb NZ's Economic Service confirming declines in the national sheep flock and beef herd may now be at an end. It also confirms the North Island has become the dominant island for both sheep and beef.

Sheep and beef numbers for year ending June 2012 are up, says the Beef + Lamb New Zealand (B+LNZ) Economic Service.

The iFarm lamb procurement indicator measures the current lamb farmgate price as a percentage of the UK leg price when brought back into NZ dollars.

Droughts in the US are forcing farmers to slaughter more stock and this is dragging down US domestic beef prices.

Works prices for cattle in the North & South Islands have levelled off in the last two weeks. Only local trade prices moved upwards this week.

With the official cash rate due out on Thursday, farmer confidence at the beginning of the 2012-13 season has plummeted in Federated Farmers latest farm confidence survey.

Severe hot, dry conditions in the US is having a disastrous effect on crops and pasture.