Fewer lambs to slaughter

DROP: Fewer hoggets were mated this spring, producing fewer lambs.

Lamb numbers are down 4.7 per cent as 1.3 million fewer were tailed this season, and exports could drop 6.8 per cent in 2013/14, an industry report reveals.

However, farmers say if they decide to replenish stock there will be even fewer animals to slaughter.

Beef + Lamb New Zealand economic service chief economist Andrew Burtt says the Lamb Crop 2013 Report figure is higher than expected given the impact of the drought on ewe numbers and ewe condition at mating.

However, the feature of this year's spring was the significant decrease in the number of hoggets mated, he says.

"Many farmers opted to limit the numbers of hoggets put to the ram due to the tight feed situation at mating and hogget weights," he says.

"The result is only 1.13 million lambs from hoggets - a 17 per cent drop."

Unsurprisingly, mutton-processing numbers are expected to be well back on last season, down 20 per cent to 3.3 million, which reflects the drought-driven high cull of ewes during 2012/13, he says.

Bay of Plenty Federated Farmers provincial president Rick Powdrell says variables in the report on the lamb kill might be influenced further if farmers keep more ewe lambs.

"A lot of guys in the drought de-stocked, and it's whether they retain more lambs than usual to get numbers back on the ground."

Another concern was the number of farmers going into dairy, he says. "That could have a bearing and it's always hard to fathom how much goes out of sheep and into dairy.

"New Zealand needs a strong sheep and beef industry to complement the dairy industry."

Top lambs are fetching $100 and farmers are more optimistic, but the cycles of high and low prices are not doing anyone any favours, Powdrell says.