The T150 campaign sets a goal of $150 a lamb for both the sheep-meat and wool industries.

Federated Farmers Meat & Fibre chairman, Bruce Wills, said the average lamb price received by farmers over the past three years was only $NZ55 per lamb, and the average sheep farmer's income was $19,400 last year.

"This has resulted in many sheep farmers leaving the industry," Mr Wills said.

"The Federation believes that the targeted return should be at least $150 to restore viability to the sector.

"For several years now sheep farmers have been getting inadequate returns on their efforts and capital.

"New Zealand is seeing large changes in land use and as a result a very large drop in sheep numbers - from around 40 million to 34 million over the past two years alone."

Mr Will said the poor returns have had a flow-on impact in New Zealand's towns and cities, with job losses at industries like the freezing works.

"Lamb exports contribute over $2 billion per annum to the New Zealand economy and it is of grave concern to the country that such an important industry is in crisis," he said.

The Federated Farmers believe the ambitious target can be achieved by improving efficiencies and rationalising within the supply chain.

"Currently farmers receive less than 20pc of the retail value of a lamb," Mr Wills said.

"Farmers too have their part to play. We need to commit to supply contracts with our meat processors and spread our selling season."