12 May 2009

Sheep numbers to fall despite higher prices - Fed Farmers

11:43 am on 12 May 2009

Sheep numbers are predicted to keep falling despite the price of lambs rising to $90 each from $55 a year ago.

Three years of drought have reduced the national flock by 25%, and Federated Farmers Meat and Wool Division president Bruce Wills says the lack of stock is driving prices up as demand remains firm.

Mr Wills says continued drought in some areas, as well as problems with the processing industry, mean farmers are likely to keep trimming their flocks.

He says prices need to exceed $100 per lamb to lure farmers back to sheep farming.