Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ lamb prices lift

Monday 10 October 2016 11:48 AM

NZ lamb prices lift; weak demand likely to weigh on future returns

By Tina Morrison

Oct. 10 (BusinessDesk) - New Zealand lamb meat prices advanced last month on lower supplies but analysts expect the uplift will be temporary due to weak demand in the UK market, where around two thirds of the country's lamb legs are exported.

The benchmark CKT price for a leg of lamb in the UK rose to 4.20 British pounds per kilogram in September, from 4.10 pounds/kg in August and 3.40 pounds/kg in September last year, according to AgriHQ data. In New Zealand dollar terms, returns were $7.51/kg in September, from $7.41/kg in August, and compared with $8.04/kg a year earlier.

In New Zealand, the average price from local meat processors lifted to $5.80/kg, from $5.68/kg in August,and compared with $6.05/kg a year earlier, AgriHQ said.

New Zealand lamb numbers are forecast to decline this season after the number of breeding ewes fell 3.1 percent last season, the 10th consecutive annual decline. While the lower supply has bolstered prices in recent weeks, that's expected to ease once the main production period gets underway due to weak demand in the UK and as export returns are hurt by the elevated level of the kiwi dollar combined with a weak British pound.

"UK demand for New Zealand product is low, not helped by low consumer demand for lamb, which is priced much higher than alternate proteins such as chicken and pork," AgriHQ analysts Reece Brick and Shaye Lee said in their report. "A larger portion of UK lamb is continuing to stay within the local market as well, providing little incentive for buyers to source from New Zealand."

Major supermarket chains in the UK have indicated they will be taking a step back from promoting chilled lamb this Christmas as they are unwilling to absorb the same losses generated in previous seasons, according to the report.

The lower prices mean it won't be economic for many meat processors to air freight lamb meat to the UK, resulting in a narrower production window and ensuring there will be very few new seasons lambs ready in time to make the slaughter window for sea freight, it said.

NZ exporters are looking at how to divert product away from the dominant UK market, he said.

Meanwhile, the price for US imported 95CL bull beef, the raw ingredient for meat patties, slipped to US$2.02 a pound (weight) in September from US$2.18/lb in August, AgriHQ said, citing increased local US production, uncertainty around the potential for increased supply following the approval of Brazilian beef imports, and competition from cheaper proteins such as pork and poultry.

"Market signals indicate the imported beef trade will continue to be burdened with weaker prices through until at least the start of 2017," the report said.

Meat is New Zealand's second-largest commodity export behind dairy products, and was worth $6.39 billion in the year through August, according to Statistics NZ data.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: