Beef + Lamb New Zealand's Economic Service is predicting meat companies will process even fewer lambs for export this season than it had earlier forecast.
The service has revised its total lamb production figures to 19.3 million head for the current season.
That's a drop of nearly 8% on earlier forecasts of 19.5 million, putting further pressure on an industry that's already struggling with declining stock numbers and too much processing capacity.
South Island processing plants are only just reaching peak production now, six weeks later than usual.
The Economic Service's executive director, Rob Davison, says it's the lowest lamb slaughter figure in 50 years.
But he also says the tight supply is likely to keep lamb prices high for a further two to three years.
He says lamb averaged $116 a head last month, up 53% on the same time last year. Similarly, mutton prices were up 63% on a year ago, at $97 a head.
