While lamb is up 10c, trading around $5.20 a kg, mutton is up 70c a kg on a year ago. ASB senior rural economist Nathan Penny said with slaughter rates likely to remain low during the coming months he expected the prices ‘‘to maintain their buffer over recent years’’.
The lower slaughter rates had combined with a "scramble" by suppliers to fill Easter orders, prompting higher bids from the suppliers recently, he said.
"Lamb prices have bucked their normal February trend, lifting 10c per kg so far over the month. This lift is in stark contrast to previous years," Mr Penny said.
He said AgriHQ reported that during the past five years the average price drop between January and February was 25c/kg. Lamb had never posted a gain during that period in five years.
"The lift so far over the month takes prices back above this time last year and above the same time in 2015, as well," he said.
"Firm mutton prices, along with tight supply, indicate that demand in the key Chinese market is firming compared to previous seasons," he said.
Mr Penny cautioned the normal seasonal price pattern would still apply this season and the prices were likely to still "drift" out to April.
