New Zealand lamb producers are experiencing a 10-year high lamb price for new season lamb this October. The average lamb price for August was $8.50/kg (€4.85/kg) with $8.30 (€4.74/kg) now being paid for new season lamb.

This is the highest price paid in the past 10 years. Total lamb exports are estimated to be worth around $3.1 billion (€1.77 billion) in 2018-19.

Tighter supply from both Australia and New Zealand and growing global demand is increasing New Zealand export values. New Zealand’s export lamb production is forecast to decrease by 1.7% in 2018/19 due to a smaller lamb crop as a result of lower ewe numbers.

Mutton exports are also forecast to be down – by 17% – because of the smaller and younger breeding ewe flock. More ewe hoggets were retained for breeding this year reflecting farmer confidence.

Meanwhile, New Zealand’s beef cattle herd grew by 1.9% to 3.68m head at 30 June 2018, the second small increase in a row after declining steadily since the 1990s. China now accounts for 33% of New Zealand’s red meat exports and is the largest export market by volume and value. A new report forecasts farm profit before tax to decrease 2.8% to $129,700 (€74,114) for 2018/19 on average for New Zealand sheep and beef farms.