This season's lamb kill is running well ahead of where it was at this time last year, and seems to confirm predictions the kill will taper off and the final tally will be 23% lower than last year.
But there was concern there could be another high ewe kill, with figures showing that to the end of January it was running 6.5% ahead of the same time last year.
Figures provided by Meat and Wool New Zealand's Economic Service to the end of January indicate 45% of the expected lamb kill had been processed, compared to 38% for the same period last year.
An executive director of the Economic Service, Rob Davison, said meat companies and transport operators reported they were well through the lamb crop.
"All indications we have is that it has been a big, early kill and the expectations are the kill will taper off for the rest of the season," Mr Davison said.
The figures also confirmed the forecast kill of 20.4 million lambs compared to 26.5 million last year.
The mutton kill was higher than expected, even taking into account the massive liquidation that occurred last year due to changing land use and drought.
Mr Davison said to the end of January the mutton kill was 6.5% ahead of the same time last year, but he expected the kill to drop off quickly.
He also expected a high cull dairy cow kill, given the lower milk payout.
Some meat companies have reported their cull cow kill to be 85% ahead of last year.
Silver Fern Farms chief executive Keith Cooper said the number of lambs being presented for processing was falling week by week and it looked as if predictions of six million fewer lambs and three million fewer ewes was accurate.
"It is happening. We are seeing a big, early drop off."
But the better growing season meant some farmers were holding on to animals and he expected the season to have a long tail, which was what markets wanted.
"We are going to see a drop off far earlier, but then there is going to be a long tail into the winter."
Average lamb weights were also up.
Mr Cooper said the size of ewe kill was "frightening", but added it could be due to some areas getting dry in January and early February, or farmers killing old ewes but keeping more ewe lambs.
With the passing of the deadline for Easter shipments, premiums for lamb have started to be removed, but market prices appear to be holding up.
Silver Fern Farms (SFF) reported that the European Union lamb market remained steady, but there was pressure on markets outside Europe, where New Zealand was competing with cheaper lamb from Australia and South America.
The company's market report said representatives at the Gulf Food Fair in Dubai last week reported business was depressed due to reduced tourist numbers.
Some hotel occupancy rates around the world during January were as low as 30% but the company said retail sales were holding up.
Demand for lamb and deer pelts remained steady but for sheep it was selective and favouring lighter sheep.
The cattle hide market remained weak, as tanners reduced production capacity, in some cases, by up to 50% due to lack of demand from the car upholstery and furniture markets.
SFF also reported that venison markets were quiet, as consumers watched their discretionary spending.
Manufacturing meat and shoulder cuts were still in demand, but growing confidence and a favourable exchange has seen a rise in the venison schedule.
The report stated there was little confidence in beef markets, with limited demand from the United States for imported grinding beef, due in part to the continued large domestic cow slaughter, which was up to 32% higher than the five-year average.