Meat and Wool New Zealand's Economic Service is blaming drought and dairy expansion for a 15% drop in lamb numbers this year.
The service's annual lamb survey shows that numbers have fallen to about 27 million, a drop of more than 4.5 million on last year.
The Economic Service's director Rob Davison said the breeding ewe flock has fallen by almost 10% as a result of rapid dairy expansion and more farm land going into cropping.
There hasa also been a drop in the number of lambs born per ewe and the numer of lambs from ewe hoggets, as stock are in poorer condition due to drought.
The biggest declines were in the Northland, Waikato and Bay of Plenty regions, where lamb numbers have fallen by more than 25%.
The Economic Service predicts the number of lambs to be processed for export will fall by six million, or 23%.
Rob Davison said that is partly because a large number of lambs were slaughtered last year when usually they would have been kept to replace older ewes.
However he said heavier lamb carcase weights this year will partly offset the big drop in export lamb numbers.
Federated Farmers meat and fibre chairman, Bruce Wills says the drop in numbers is further evidence of the desperate state of the sheep sector.
He said prices have lifted this year due to a supply shortage, but more work is needed to bring better returns to sheep farmers, otherwise there will be no industry of any consequence left.
