You are using an older browser version. Please use a supported version for the best MSN experience.

Lamb export prices up to multi-year high

NZ Newswire logoNZ Newswire 8/05/2017 Tina Morrison

Export prices for lamb pushed higher last month as solid demand overseas coincided with soft supply from New Zealand, according to AgriHQ.

Benchmark frozen lamb prices for legs, french racks and forequarters all lifted in April to hit multi-year highs, according to AgriHQ's latest monthly sheep & beef report.

The benchmark price for a frozen leg of lamb in the UK rose to 5 British pounds/kg in April from 4.80 pounds/kg in March and from 4.35 pounds/kg a year earlier to the highest level since November 2011, AgriHQ said.

In the European Union, the benchmark increased to 5.75 euro/kg from 5.70 euro/kg in March, 5.40 euro/kg a year earlier, and was the highest level since July 2015.

For frozen french lamb racks, the benchmark price in the US rose to US$8.50/kg from US$8.25/kg in March, US$6.65/kg a year earlier and hitting the highest level since December 2012. In Europe, the benchmark rose to 17.25 euro/kg from 16.75 euro/kg in February, 13.50 euro/kg a year earlier and the highest since March 2012.

The price for a five-rib forequarter increased to US$5.20/kg, from US$5/kg in March, US$3.75 a year ago and the highest level since November 2014.

The benchmark lamb flap price remained stable at US$5.75/kg compared with the previous month, as demand from China steadied as Asia's largest economy approached its lower consumption period, AgriHQ said.

"Exporters have kept finding solid demand out of both the UK and continental Europe," AgriHQ analyst Reece Brick said in his report. "UK importers have shown good demand for the last few months", while "continental Europe is hopping from strength to strength".

Other markets were also firm, with prices in the Middle East and the US trending upwards through April, and low levels of exports from Australia were also helping elevate prices, Mr Brick said.

Meat is New Zealand's second-largest commodity export product behind dairy.

image beaconimage beaconimage beacon