Flying lamb trade showing no sign of stopping next year

Finished lamb prices have flourished throughout 2024, with deadweight values on the cusp of £7/kg this week.

The trade has been primarily driven by tight supplies, with UK clean sheep slaughterings down by 11% on the year during November to total 1.01m head.

Lower throughputs come as little surprise though, as Defra’s annual June census recorded the lowest number of sheep and lambs in the UK for 14 years, at 31m head.

See also: Festive trade on fire at Christmas fatstock shows

Jonny Williams, joint business director at livestock marketing co-operative Farmstock Scotland, said trade continued to look really positive, adding that the industry has seen serious declines in volumes for both beef and sheep.

“We are seeing this right across Europe and also hearing about a very poor lamb crop in New Zealand due to the bad weather,” said Mr Williams. “Everything points to really tight volumes, and one would assume that would point towards strong prices.”

He added that a lot of lighter lambs have been exported from the UK to southern Europe.

However, the pound has strengthened against the euro and reached its highest level since 2016, making UK lamb exports to the continent slightly less price competitive.

Domestic sales of lamb have been providing further support for prices, with volume sold at retail up by 3.1% year-on-year during the autumn.

At the Hybu Cig Cymru (Meat Promotion Wales) 2024 conference, Ed Brown, consultant at Gira Food, said: “On the whole, it’s a positive story at the moment – farmgate prices are really strong and that’s because of the fundamental underlying strong demand when, at the same time, supplies are staying relatively tight.

“So, from the prices point of view, it’s relatively positive in the short-term outlook.”

Further ahead

Ramadan is due to be celebrated from 1 March onwards in 2025, which should help to provide some early demand for lamb in the new year.

Meanwhile, reports from the trade suggest that tight numbers in New Zealand could limit import volumes coming into the UK during the next six months.

Live ring

The liveweight SQQ for finished lambs averaged 309p/kg at auction markets in England and Wales for the week ending 14 December.

Reflecting on trade at Kirkby Stephen Auction Mart throughout 2024, auctioneer Mark Richardson said the best-quality lambs regularly achieved over 400p/kg and peaked at an astonishing 784p/kg.

Mr Richardson added: “Prime sheep trade remained robust throughout the year, defying the usual late-year slump thanks to a balanced supply and growing demand.”