Great pastoral conditions along with continuing good prices

Photo: Courtesy B+LNZ

Beef + Lamb NZ’s mid-season update for the sheep and beef sector reports that export receipts estimated at $6.6 billion hold at last year’s level. Last year, export receipts for the sector were up 15 percent.

Expectations are for a small lift in export volumes and continued good prices relative to recent years. This will be moderated by the strength of the New Zealand dollar, particularly against the Euro and British pound.

The report contained few surprises for B+LNZ Economic Service director Rob Davison, who says it’s rare for such good pastoral conditions and international prices  to align. Lamb prices are expected to average at $115 a head, slightly down on 2010-2011’s high. Offshore prices are expected to remain at good levels, though the stronger NZ dollar against the pound softens the price received here. The recent strengthening of the NZ dollar against its US counterpart is also a concern, Davison says.

Global mutton supplies remain tight, while beef exports are expected to lift in the 2011-2012 season which ends in June.

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