On ave, 16kg lambs were $5.70/kg (gross incl wool/pelt presentation etc) but as much as $5.90/kg was paid last week. The improvement in prices might be drawing a few out, but farmers are also being proactive and slaughtering before lambs get too heavy. Next week, some farmers are hopeful they'll be able to squeeze $6/kg out of meat processors. Once this milestone is hit, more lambs may come to market as farmers take the money and finally get out of store lambs that were purchased on a super strong market earlier on. As the SI lamb kill seasonally declines, procurement pressure begins to rise. Once winter lamb contracts come into play at the start of July, it may also drive farmgate prices higher for farmers who are not signed up.
Chilled lamb moving
NZ exporters have noticed a slight improvement in demand for chilled lamb in recent weeks, in particular from Europe. As the Northern Hemisphere heads into summer, demand for middles improves as consumption increases for cuts that are thrown on the BBQ, such as chops. This is helping processors turnover product without having to freeze it down and add to the stock pile in storage. Frozen product on the other hand, continues to be hard to shift. Some of the larger processors that have loads in storage are trying to trickle the surplus product onto the market, rather than dumping it which could send overseas prices plummeting. This extra product will continue to hold back prices from their potential, until its cleared and we can start fresh again.
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Market Brief by iFarm.co.nz iFarm the leading source of agri-market prices, information and analysis for NZ farmers. Receive benchmark prices for the works, store and saleyard markets delivered direct to your inbox. Visit www.ifarm.co.nz or call 0508 873 283. |
