The demand for New Zealand lamb overseas is strong for most cuts, an analyst says.
NZX Agrifax analyst Nick Handley says lamb supply is constrained and therefore the ongoing returns to farmers should be good.
"Most items of the carcass are in good demand, except for the high-value bone-in middle cuts, which remain under more pressure than other parts of the carcass," he says.
Shoulder cuts are selling well and pricing has improved, boosted by Middle Eastern and Chinese demand.
"Markets are in a much better position than a year ago," Mr Handley says. "For example, UK leg returns are about 30 percent higher than they were this time last year."
In the beef market, he says, the higher kiwi dollar is eating into exporters' returns but there are developments in Asian markets.
Import permits for the second quarter of 2014 are in the process of being released in Indonesia, confirming that the revived trade with this market will continue for at least the next few months.
