A weak New Zealand dollar is doing much of the work behind strong farm-gate prices, says Susan Kilsby, agricultural economist.

Her last lambs averaged about $250 a head.

“$50 of that could really be put down to the low New Zealand dollar,” she says.

She says the dollar tends to fall just when global demand weakens.

“That’s buffering the impact that we’re having here on the farm gate, and it’s actually a sort of net gain to us at the moment.”

She says farmers should invest wisely, because prices will not hold forever.

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