New Zealand-Lamb shortage.

NEW ZEALAND-ACCUTE LAMB SHORTAGE.

New Zealand lamb supply is starting to get tight, with the most recent slaughter data indicating the kill declining by around 25 per cent per week over the previous five weeks. Meat processing companies realise this and the strong competition for procurement continues.

Overseas buyers continue to confirm orders and the supply side of the equation has caused some slight positive price movements for most lamb cuts. Schedule prices this week for a 17.5kg lamb are currently $33 a head higher than this time last season, averaging $92, and are 43 per cent ahead on the five-year average.

Beef: NZ manufacturing beef into the US increased by 5c/lb last week due to shortages in the spot market and an unexpected rise in demand. The NZ dairy cow cull will increase from current levels in early April. All other things being equal, this expected increase in volume will put downward pressure on the recent gains made for US imported bull and cow.