There will be an 8.5 per cent drop of new-born lambs in New Zealand due to the drought. Based on a yearly stock number survey by Beef + Lamb New Zealand, the number of lambs is expected to about 24.5 million.

Andrew Burtt, chief economist of Beef + Lamb New Zealand, said the main impact of the lesser number of lambs would be felt in the North Island where sheep numbers had gone down by almost 3 per cent, while the drop in the South Island is almost negligible.

Exporters will also feel the lamb shortage as they try to meet demand from overseas customers while making do with the expected 18.6 million heads which represents an 8.5 per cent decrease. Cattle for slaughter are also anticipated to go down by 2.2 per cent to 2.2 million heads only.

Also expected to go down is cattle numbers by 1.3 per cent across the country, but the decline in the North Island would be by 2.5 per cent.

However, despite the anticipated lower volume of exports, lamb shipments in June reached 28.045 tonnes swt, 14 per cent higher compared to the same month in 2012 and the third highest June total on record.

The export hikes were felt in major markets such as the UK by 14 per cent to 3,602 tonnes swt, the U.S. by 56 per cent to 1,696 tonnes swt and China by 42 per cent to 11.731 tonnes swt.

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