Like beef, sheep values have bounced back from the large drop in 2020 to return to largely what they were in the 2018 year. All categories of sheep have seen double digit increases in value except two tooth ewes and breeding rams which were the only category to decline in value. Two tooth ewes increased from $177 to $191, which equals the second highest value on record. This is consistent across almost all categories of sheep and indicates that markets have recovered well from the uncertainty posed by Covid-19 last year.

Drought has continued to be an issue in many traditional sheep farming areas with much of the upper South Island and the North Island experiencing drought conditions during the 2021 season.

Sheep numbers continue to fall, as they have done consistently since the peak of a little over 70 million in 1982, to less than 27 million now. Whilst sheep meat values have improved, wool values remain depressed, including premium wool where European manufacturing has struggled to recommence following repeated Covid-19 lockdowns. As countries reopen it is likely that a new wave of demand will follow.