Recent trends indicate that supply shortages in overseas markets are influencing sheepmeat slaughter prices. Current data reveals that prices are approximately $1.50 per kilogram higher compared to the same period last year.
AgriHQ data reveals that the slaughter price for 18kg North Island lamb reached approximately $8.10 per kilogram at carcass weight (kgCW) last week. This figure represents an increase from $6.35/kgCW during the same timeframe last year and is also up from $7.90/kgCW recorded in late October.
Meanwhile, in the South Island, lamb slaughter prices reached $8.06 per kilogram at carcass weight (kgCW) last week. This marks an increase from $6.40/kgCW recorded during the same period last year.
Export prices for China lamb flaps have also increased to $10.13 per kilogram, up from $8.59 per kilogram last year.
Mutton prices across both islands in New Zealand have shown growth compared to last year. In the North Island, the price for mutton reached $4.20 per kilogram at carcass weight (kgCW), a notable increase from $2.65/kgCW last year. Similarly, in the South Island, mutton prices rose to $4.00/kgCW, up from $2.35/kgCW during the same period.
New Zealand’s largest meat export market
The Meat Industry Association (MIA) indicates that China has reclaimed its status as New Zealand’s largest red meat export market as of October. In that month, total red meat exports reached $662 million, reflecting a 7% increase compared to the same month last year. Notably, exports to China accounted for $170 million of this total.
According to Sirma Karapeeva, chief executive of the Meat Industry Association (MIA), while exports to China experienced a 10% decline year-on-year, there are emerging signs of recovery, particularly with indications that lamb prices have now stabilised.
“Overall, October exports were generally positive, with increases to most major markets and an increase in value for both sheepmeat and beef,” Karapeeva said.
“There was also positive growth in exports of chilled sheepmeat and beef, particularly chilled sheep meat, to the European Union.”
“There was also an increase in overall exports to the UK and the major European markets, mainly due to growth in sheepmeat exports. There was a small drop in exports to Japan, down 5% to $28 million.”
In its latest market report to farmers, Silver Fern Farms highlighted that livestock availability is beginning to increase as the year approaches its final weeks.
However, the company emphasised that security of supply remains a primary concern for 2025, with global customers eager to secure consistent volumes and continuity in their supply chains.
Negotiations for Easter 2025 supply are currently in progress, and early indications suggest a promising demand from major players in the market.