Aiming for $150 lambs

Federated Farmers is launching a campaign to raise the average price of a lamb to $150 in five years.

That’s around three times the price paid last season and nearly twice what’s expected this season.

Feds says better returns will come for efficiencies and rationalisation in the supply chain and that farmers will need to commit to supply contracts with meat companies, and spread the killing season.

The sheep and lamb kill will be down by about nine million head this season. That will leave a lot of spare capacity at freezing works which will force rationalisation on meat companies.

But committing to contracts and spreading the season are easier said and done because unless you have irrigation and/or scope, when you sell is dependent on feed which varies with the rainfall.

The demand for by-products also impacts on farmer returns. One reason lamb prices were so low last season was that prices for wool, pelts and tallow were well down too.

One Response to Aiming for $150 lambs

  1. Ed Snack says:

    Hmm, dreamland I suspect. There may be some efficiencies to be gained from the processing chain, but not of that magnitude. After all, the profits of the processors are low enough to cause concern. The primary determinant of the carcass price is the overseas price for lamb, and although it may well rise, not by that much unless the NZ$ crashes through the floor. That is probably the only way to achieve that sort of price.

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