The price of a lamb roast is about to jump as competition between exporters sends prices soaring.
The extra cost of the traditional Sunday roast is likely to hit household budgets in a fortnight, as supermarkets increase prices.
Prime lambs reached $93.50 at auction on Monday. A few daysearlier, the $100 mark was nearly reached. This time last year, lambs were selling for $60 to $70. Meat processors expect prices to increase further.
Prime lambs are in short supply in the South Island because of the drought, and South Island meat companies buying to fill export orders are forcing up North Island prices.
Meat Industry Association executive director Brian Lynch said it was "a tad ironic" that the cost of lamb in a country with 45 million sheep was spiralling, but local prices were dictated by overseas demand.
Foodstuffs spokesman Alan Richardson said he expected retail prices to increase in the next two weeks but said retailers would absorb some of the extra costs.
"We haven't done the sums but we are trying to absorb increases."
Prices were heading towards $5 a kilogram for carcass lamb, up from $4.30 a few weeks ago.
"It's certainly at the high end of the range in recent years," Mr Richardson said.
Legs of lamb sold in Auckland supermarkets yesterday for about $10 a kilogram. Lamb shoulder chops sold for between $7.99 and $9.49 a kilogram, and racks of lamb between $18.99 and $20.99 a kilogram.
The increase comes on top of continuing high prices for cattle, keeping beef prices at record levels, underpinned by a favourable exchange rate.
A University of Otago senior lecturer in nutrition, Winsome Parnell, said high prices for lamb and beef would affect people who had to budget.
"Meat consumption is a real priority for New Zealanders, and they will have that and do without other things.
"I don't think anyone will come to nutritional grief but I think some people will find it much harder to stretch their food dollar."
A 1997 National Nutrition Survey found 20 per cent of New Zealanders ate lamb at least once a week, compared with 45 per cent who ate beef mince at least once a week.
