Depleted lamb stocks drive up prices
Sheep farmers have begun to draw ewe lambs from replacements to capitalise on deadweight prices that have marched through the £6/kg mark.
AHDB figures for the week ending 20 February, showed old season lamb (OSL) SQQ deadweight prices rose by 16p/kg in seven days to average 609.10p/kg.
Prices are 160p/kg above the five-year average, and 77p/kg higher than the same week last year.
The deadweight price is above the record high seen in April 2018, according to AHDB analyst Bronwen Magee.
Liveweight prices did ease back slightly during the week to 24 February with OSL SQQ down by just under 2p/kg, to average 277.88p/kg.
“But prices continue to trend well above those achieved last year at 43p higher than the same week in 2019, and 78p above the five-year average,” Ms Magee said.
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Strong demand, low supply
West Country-based livestock co-op CQLP said it was seeing an exceptional market with demand remaining strong.
Marketing and procurement officer Shelley Lockett said deadweight prices had risen to peak at 620p/kg for a 22kg, E 3L lamb this week.
The same grade organic lambs had reached 640p/kg, Ms Lockett said.
Demand remains strong and supply is just not there, she said.
Supplies were down because flock-keepers had sold more lambs than usual at the end of last year. Farmers had been concerned about the post-Brexit trade and had already sold before the deal was agreed just before Christmas.
With flocks depleted, some CQLP sheep farmer members have begun to dip into ewe lambs to take advantage of the high prices, she reported.
“Feed and straw prices have been high this winter and our members don’t want to miss out on the chance to bolster cashflows,” Ms Lockett said.
Consolidated market
Farmer-owned livestock marketing business Meadow Quality also reported an increase in prices.
The firm’s sheep marketing specialist Gordon McWhirter said averages had moved up 15p/kg in the week to 22 February from 575p/kg to 590p/kg.
Top prices had risen by 10p/kg to break the £6/kg mark, while the same spec organic lambs rose to a peak of 610p/kg.
Mr McWhirter said the market had consolidated and the outlook remained firm.
Prices are even more remarkable than the previous peak achieved in April 2018, he said.
“Those prices were achieved after the Easter market rush, when depleted supplies traditionally drive up values.
“With that effect still to come, and already low levels of supply, we should see the firm trade continuing,” he suggested.