The cost of lamb will likely increase, thanks to Southland's savage snowstorm - but according to market analysts, so far a strong NZ dollar and weak British pound have pushed prices down.

Farmers are thought to have lost between 350,000 and 500,000 lambs in last month's heavy snow and freezing temperatures in the Deep South.

The big drop in lamb numbers is expected to push prices up soon but at this stage exchange rates have kept supermarket prices in check.

Phil Journeaux from the Ministry of Agriculture and Forestry predicts the average sheep and beef farm in Southland will lose money on the storm this year.

“On our farm monitoring model, it looks like the average Southland sheep and beef farmer, instead of operating at a slight profit, are now looking at a thirty to forty thousand dollar loss,” said Mr. Journeaux. “The immediate impact will be in Southland, but the flow on effect will be to the meat companies and others as well,” he said.

Meantime, Federated Farmers says about 25 farms in Southland will need help to keep feed levels adequate, following the freak snow storms.

Federation president Don Nicolson estimates the storm has cost the province about $50 million in lost milk production and stock losses.

Lindsey Wright of Southland’s Rural Support Trust says farmers are working together to rebuild.

Federated Farmers will hold a series of 3 post-storm meetings this week -  in Wyndham on Monday, Otautau on Tuesday and Balclutha on Wednesday.