Farmer and truck owner Russell Emmerson said yesterday it was sad for the lambs, who had just been removed from their mothers that morning.
The two human occupants of the truck were uninjured. Mr Emmerson and a driver were transporting about 200 lambs from one block to another.
Constable Mike Johnston said the accident appeared to have been caused by a blown front tyre. The commercial vehicle investigation unit would take over the inquiry.
Emergency services and farmers from Luggate, Tarras and Wanaka attended the scene and offered their help.
The accident blocked one lane of the highway for a short time.