Lamb China, UK and Europe demand is soft and surrounded by a bit of uncertainty as to where its headed. Seems inflation maybe biting and inventories are high. Note: table below on UK Exports. Compare ‘This year’ with ‘5 - yr Average’ and general trends. Australian lamb now flowing into NZ. Does not look like many lambs out there to process. Processors lamb margins are poor at present. Pork Import Pork The increased pig carcass price and lower pig numbers in Europe now being felt here as the more expensive product is starting to arrive. The US now provides some more favourable options for some items. However there is a bit of uncertainty creeping in around Europe as demand seems lower than would be expected for this time of year when moving into the Northern Hemisphere summer. With high carcass prices processors will be getting squeezed. Graph below indicates about a 75% carcass price increase in less than the last 18 months! NZ Pork Pricing has been stable for a long period now. A couple have farmers have exited the business. This most likely has served to right size the demand/supply equation as NZ market is quieter.
Download PDF file