Weakness of the antipodean currencies demonstrates how perverse responses along the international supply chain can turn good news into bad for UK buyers. Australia's tumbling dollar has pulled the New Zealand currency down with it, helpful to British purchasers paying in sterling for imported lamb. However, NZ sheep farmers are consequently enjoying the best prices they have seen for nearly 30 years show signs of over-confidence. Export processors already complaining of producers holding slaughter stock back an inconvenient week or two to put on valuable extra weight now fear a sharp increase in ewe lamb retentions for breeding. Flock expansion as a reaction to the buoyant returns would tighten supply further in the short to medium term, potentially cancelling out the exchange rate benefits to the processors and their British customers. {{M/E MEAT }}