Record export revenue for lamb and mutton
A record $823 million of lamb and mutton headed to markets offshore as farmers reacted to high prices and made cuts to their sheep flock to conserve drying paddocks.
Beef returns were also at their second highest level in the quarter year to December, says Beef + Lamb New Zealand’s (B+LNZ) Economic Service.
Export volumes of lamb and mutton were up at record values and near record values for beef.
‘‘The average value per tonne for exports started at a high level after strong growth during the
2016-17 season and have remained strong despite higher processing volumes so far in 2017-18,’’ said B
+LNZ chief economist Andrew Burtt. He said farm-gate prices for lamb were up 30 per cent and mutton 59 per cent for the first quarter compared with the same period the previous season.
This was an added incentive for farmers to send stock to meat companies. In comparison, cattle prices were relatively steady at up 5 per cent. ‘‘Dry conditions led to an increase in New Zealand sheepmeat, cow and bull production over the first quarter compared with the same quarter in
2016-17. The 2016-17 season started slowly due to generally wetter and cooler weather and livestock were harder to finish, but good pasture availability reduced pressure on farmers to sell.’’
The record $677m of lamb exported for the three months was up 47 per cent on the same period in the 2015-16 season. The average value was up 22 per cent and equalled the record set in the December quarter of 2011 at $10,460 per tonne. Lamb shipments of
64,700 tonnes were up 21 per cent. Mutton export receipts reached a record $146m, up 93 per cent. Previously, the record was $96m in
2015. Mutton exports rose sharply in the December quarter by 46 per cent, but total mutton production is forecast to be down 9.1 per cent for 2017-18.