The smaller number of lambs born in spring 2008 is having a big impact on supply and the prices farmers are getting now, according to Rabobank's latest Agri-business review reports The Dom Post. Lamb volumes processed are now 1.2 million behind the same period last year. That's 9 % , with the bulk of the variance coming from the South Island."The further 2 % lift in prices over the past month also reflects very tight supply. Farm- gate prices have been maintained at around $5 a kilogram over the peak processing season," the report said. Prices for lamb now sit around 50% higher than this time last season in the North Island, and more than 80 % higher in the South Island. Rabobank said January export totals told the story of reduced supply. "However, export value increased 12% , or by $32 million for the month as the lower NZ dollar also played a role." The Agri-business review said although farm-gate beef prices had eased, prices still remained 10-20% above the same period last year. And while cattle slaughter is tracking above the previous season, it is virtually all due to an increase in cow slaughter rates, which are sitting 37% ahead of last season. "That's due to the change in cull dairy-cow slaughter rates with a lower dairy payout and reduced herd expansion." It said that on a global note, lean manufacturing beef prices had eased. "Lower prices can be attributed to questions remaining over the outlook for the United States beef demand in 2009, despite relatively stronger fast-food sales. Additionally, US domestic cow slaughter has been higher."That is largely due to a sharp increase in dairy-cow slaughter due to low milk prices. It also looked at dairy demand."Optimists will note that prices did appear to stabilise and the March global DairyTrade auction saw whole-milk powder prices lift an encouraging 16 per cent on average for deliveries out to November 2009."But the report said it would be premature to call it the start of a turnaround in prices."Demand conditions remain extremely poor. Credit markets are still tight, evidence of the severity of the global economic crisis continues to mount, and data reveals the extent of its impact on dairy procurement."
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