The Beef and Lamb economic service's annual lamb crop survey released yesterday showed the number of lambs tailed this spring was 26.51 million.
That figure was 1.72 million (or 7%) up on last year's total, with lambing in September 2010 affected by adverse weather conditions hitting much of the country during the peak of of the season.
While this spring's lamb percentage represented a recovery from last year, other factors were at play, Mr Davison said.
The national average was 119 lambs born per 100 ewes, compared with 110 lambs per 100 ewes last year and this year's weather at peak lambing was vastly improved.
However, offsetting the increased numbers of lambs born was a 2.5% decrease in the size of the country's breeding ewe flock.
That reflected the continuing expansion of the dairy herd and last season's strong mutton prices, which encouraged a higher than usual cull of poorer performing ewes.
The number of prime lambs available for export this season was estimated to be 20.6 million.
While that was 1.3 million head more than last season, 2010-11 saw a 49-year low in the number of lambs processed, with this season shaping up to be the second lowest in 49 years.
Carcass weights were predicted to average 18kg, down 1.4% compared with last season's record high of 18.23kg due to more lambs around to finish.
Early season payments to farmers for prime export lambs were strong, at around $8-$8.20 per kg. Indications were that those prices would ease as the season progressed.
The lamb crop was expected to generate $2.9 billion in export receipts - $100 million more than 2010-11, he said.
South Island lamb numbers were up 6.7% (or 880,000 head) to 12.41 million head, while the lambing percentage at 120.7% was up 8.7 percentage points from a low of 112% for the previous spring.
Most regions in the South Island experienced mild weather during lambing except parts of Southland and West Otago which had persistent rain and wind and some snow during lambing. Some farms suffered lamb mortality equivalent to last spring.
The total number of lambs from Otago was estimated at 4.51 million, with 4.46 million for Southland. Although that was an increase from last season, lamb numbers in the combined region were continuing a downward trend as a result of land use change and loss of breeding ewes, the survey said.
The Otago and Southland lambing percentages were estimated at 124.7% and 126.1% respectively - well up on last season and ahead of the national average of 119.3%.