LAMB | Farmgate prices finally stabilise

The most recent lamb kill estimates show numbers beginning to decline as the lamb kill runs out of steam after running at above average levels for the season to date. Meat companies have begun to concentrate of clearing the backlog of ewes. The mutton kill has taken off and is 20-25% above 5 year average levels for this time. Unfortunately the NZ dollar remains strong against the pound in particular. This, combined with the fact that meat company margins on lamb remain lower than typical, means there is a chance lamb prices could still go lower.

Store lamb market struggling
Most North Island regions are desperate for some real rain so there has been little demand for store lambs recently – other than from South Island buyers. This has seen North Island paddock prices take a dive with most 26-32kg lambs selling at $1.70-1.75/kg last week although $1.60-1.65/kg is not unheard of either. Prices in the South Island have also been easing with plenty of North Island lambs boosting supplies. South Island prices have now dropped below $2/kg for the first time this season. The saleyards are also noting some pretty miserable results with store lambs averaging around $32/hd at Te Kuiti last week. Prices would have been worse at Stortford without a South Island buyer to underpin returns with most males (28-34kg) going for $1.65-1.80/kg. Feilding also followed the easing trend with 28-34kg males going for $1.65-1.80/kg although the heavier end were steady.