Very low slaughter rates are driving lamb prices higher as farmers continuing to hold stock. The per kilogram price for a 17.5kg lamb sat 12% higher than a year ago, ASB's latest Farmshed Economics report said. Farmers were holding on to stock as feed was plentiful and that was particularly evident in places like Hawke's Bay as, this time last year, feed was scarce and farmers destocked. BNZ's latest Rural Wrap said the 2016-17 season average lamb price forecast was pushing up towards the mid-$5kg mark. Lamb prices in the UK had continued to run higher and prices now were more than a third higher than a year ago.

Source: Otago Daily Times April 03, 2017 18:05 UTC