Lamb prices have hit a record high
The world is paying record prices for our lamb as consumers in Europe and the United States can’t get enough of the premium meat.
ASB senior rural economist Nathan Penny said that at more than $8 a kilogram, lamb prices eclipsed their 2011 record highs.
‘‘Prices are strong across our key markets and reflect generally healthy global economic growth and demand.
‘‘The United States and European Union (excluding the United Kingdom) prices are particularly strong,’’ Penny said.
European consumers were paying 22 per cent more than a year ago, while prices in the US were up 19 per cent, he said.
The overall export price was up 16 per cent.
Farmers are responding to the record prices by keeping more younger ewes, called hoggets, helped by good grass growth to feed them.
Penny expected prices to remain healthy, but escalating trade tensions between the US and China was a risk to the global economy and could reduce demand for lamb.
The high price could also deter consumers from buying lamb. ‘‘But for the time being, farmers have good reason to celebrate,’’ Penny said.
Despite high lamb prices all season, this spring’s lamb flock was expected to be down 3.8 per cent to 22.8 million.
Alliance Group livestock and shareholder services general manager Heather Stacy said market prices for mutton and lamb remained high, not only compared with last year, but also the five-year average.
Alliance was paying a minimum price contract of $8.20 a kilogram for lamb for the UK Christmas seafreight chilled market, for supply from late September to the first week of November.
Beef + Lamb economic service chief economist Andrew Burtt said farmers were retaining more hoggets for future production.
The number of breeding ewes fell in all regions by 2.1 per cent overall. The number of breeding ewes dropped 3.5 per cent to 8.3 million in the North Island, while South Island numbers were down 0.8 per cent to 9 million.