Meat and Wool New Zealand Economic Service estimates that sheep numbers at the start of the current season (July 2007) are 2.4% lower than a year earlier, due in large part to a substantial decrease in sheep numbers on the East Coast following drought and floods.
Over the next four years, sheep numbers and wool production in NZ are expected to continue declining in favour of dairying, according to NZ's Ministry of Agriculture and Forestry.
Farm-gate prices in NZ$ for lamb and wool are not expected to improve significantly from current low levels until the exchange rate begins to depreciate in 2008/09.
Fine crossbred wool prices in NZ$ opened the 2007/08 season at their lowest level since 1992/93 (when segment indicators were first published).
In contrast to crossbred wool prices, NZ merino and mid-micron wool prices have risen more strongly since the beginning of 2006 as a consequence of the protracted Australian drought and good retail demand for apparel wool product. However, these higher prices benefit only a small portion (about 10%) of the NZ wool clip.
Australian Wool Innovation Limited
marketing@alchempro.com
