Drought conditions continue to affect production in Australia; in New Zealand too drought in some sheep producing regions is having an effect on performance. Whilst sheep numbers in New Zealand this year are down two per cent on 12 months ago, in Australia the flock is at its smallest since 1925. In New Zealand the carryover of animals from last season and the earlier than normal turn off of lambs for slaughter contributed to the six per cent increase in sheep meat production in the 2006/2007 production year. Total sheep meat production in Australia is expected to be slightly lower this year as producers hold on to their older sheep for flock rebuilding. However, lamb production is forecast to be up six per cent on 2006 levels.
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