Rosy outlook for New Zealand sheepmeat


Sheepmeat prices are predicted to stay at elevated levels, thanks to strong international demand

Restricted global supplies and strong international demand are set to keep sheepmeat prices at elevated levels over the remainder of this season and into the next, according to Rabobank animal proteins analyst Blake Holgate.

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Discussing New Zealand’s sheepmeat market in a recently-released podcast New Zealand sheepmeat – mid-year outlook, Blake said the strong market fundamentals experienced throughout the current season had resulted in healthy returns for sheep farmers over recent months.

And with these fundamentals set to persist for at least the rest of 2019, he says the outlook for New Zealand sheepmeat pricing was "very positive".

"We expect to see pricing levels out to the end of the season in October at least as high as the mid $8 mark per kilo we saw last year. And there could even be some upside potential on top of this," he says.

"This positive sentiment is anticipated to continue into the new season – underpinning ongoing strong pricing – with exact pricing levels to be largely determined by global supply and the degree of local short-term procurement pressure driven by the flow of stock to the processors."

Blake said sheepmeat supply out of both New Zealand and Australia – the key exporters of sheepmeat to international markets – was expected to remain tight over the coming year.

"Global supply of sheepmeat is likely to remain tight in the next 12 months with limited capacity for New Zealand to lift domestic production given where ewe numbers are at," he says.

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