Gossip in the London wholesale meat trade has suggested that New Zealand lamb might become much cheaper.
Talk of a price slide has been prompted by New Zealand incurring a huge trade deficit, supposedly making the country’s exchange rate unrealistic. Certainly the rate of about NZ$2.50 against sterling is very strong - three years ago it was NZ$3.70.
However, the major New Zealand exporters may still be locked into the strong exchange rate by currency hedges anyway, and demand continues at a surprisingly strong level for the New Zealanders’ sheepmeat in many markets.