TO date, the first of the new season lambs sold in Scotland, have attracted slightly higher prices than last year, and the hope is this trend will continue with lamb production in New Zealand set to fall further in 2016/17.
While many hill sheep farmers are still lambing, the first of prime lambs cashed north of the Border this week, have averaged well above the £2 per liveweight kg mark through auction marts. On Monday, prices levelled at 205.8p, while those sold in England and Wales levelled at a much more impressive 226p. 
New season lamb prices improved further on Tuesday too, with those sold south of the Border, levelling at 237p, compared to 228p in Scotland.
There is a long way to go, but with lower imports of New Zealand lamb expected, competition in the market place is much reduced.
Figures from the mid-season update of Beef and Lamb New Zealand, show that the Kiwi lamb crop is expected to total 23.2m head, down 5% compared to the previous season. This is a bigger decrease than the original 2% forecast last November, due to a smaller breeding ewe flock following last year’s drought.
Lamb slaughterings have also experienced a downwards revision in the mid-season update with fewer lambs around. As a result, numbers are expected to total 19.2m head, a fall of almost nearly 4% compared to 2015/16 and a greater fall than the 2% that was originally forecast.
The volume of lamb exported from New Zealand is now expected to decline by 3%, to 293,000 tonnes product weight, in the 2016/17 season, due to the smaller lamb crop. 
The unit value of lamb exports is however expected to rise by 1% as, while the global lamb market has firmed up, this has been largely offset by changes in the value of the New Zealand dollar. 
China remains the main destination of New Zealand sheep meat, with the increase in domestic demand driving the need for imports.