Lamb exports may be cut to 46-year low

New Zealand farmers, the world's biggest sheep meat exporters, may trim lamb shipments to a 46-year low in the coming season to rebuild flocks.

The export kill might fall about 2 per cent to 21 million lambs in the year starting October 1, the lowest since 1963, Meat & Wool New Zealand said yesterday. Total lamb numbers might rise 2 per cent to 27.8 million, reflecting improved breeding rates after drought in the North Island last year.

Sheep numbers are at their lowest in 50 years after drought forced farmers to cull stock and shift to more profitable dairy farming and cropping.

Some farmers might hold back more lambs this season, if they could afford to do so, Meat & Wool economic service executive director Rob Davison said.

"It's all going to depend on farmers' ability to rebuild some of their sheep flock."

New Zealand dollar lamb prices are their highest in 15 years after drought cut supply from NZ and Australia, the second-largest exporter, and sheep numbers in Europe fell.

- BLOOMBERG