Heavy lambs in demand as prices hold firm
© Tim Scrivener Finished lamb prices have seen a resurgence in recent weeks. The GB deadweight SQQ for the week ending 16 October averaged 528.3p/kg – up 5.7p on the previous week.
This is the third consecutive weekly increase in deadweight prices, after a 20p/kg jump in values the previous week.
Heavier lambs have been seeing a strong trade, averaging 234.4p/kg in GB markets, which was just a touch higher than the SQQ.
Lambs over 45.6kg liveweight accounted for 35% of total throughputs at auction markets.
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Tight supply and recurring demand continue to support prices, with the SQQ consistently up on previous years and well above the five-year average range.
The GB liveweight SQQ averaged 233.6p/kg in the week to Tuesday 19 October, marginally back on the previous week with a 2.2p/kg decrease.
This was despite GB auction market throughputs dropping back by 3,800 head on the week to total 118,200 head.
Paul Ashton, auctioneer at Sedgemoor Auction Centre, said there was an overall dearer trade for all lambs presented on Monday 18 October, with an average of £109.93 a head. Heavier lambs were keenly contested and sold to £137 a head.
Rachel Barnwell, livestock marketing specialist at Meadow Quality, said: “It’s harder to find the lambs now as the weather becomes more adverse, so prices are holding up.”
With finished numbers more difficult to find and lambs needing some dry food to kill out well, more store lambs are coming forward. Ms Barnwell added that staff numbers at processors continued to be a big problem.
Sheep throughputs and numbers
The AHDB estimated that slaughter numbers were one million head lower than at the same point in 2020, standing at 8.5 million head.
UK sheepmeat production is forecast by the AHDB to fall by 2% during the final quarter of 2021 compared with the same period last year, which will continue to support prices in the short term.
Total sheep numbers are at the lowest levels in England since 2012, according to Defra data.
At the 1 June census, there were 14.6 million head of sheep and lambs – a decline of 2.7% on the previous year.
The female breeding herd was down on the year by 1.5% to total 6.8 million head, and lambs under one year old dropped by 3.9% year-on-year, totalling 7.4 million head. These lower numbers were helping to support prices.
Store trade
Store lamb trade has also been well supported, pulled up by strong finished prices.
In Scotland, Ruthin Farmers Auction sold 2,264 head of store lambs averaging £65.50 a head at its sale on 14 October.
In England, store lamb trade at Rugby Farmers Mart on Monday 18 October averaged £78 a head, up £12 a head compared with a fortnight earlier, with the number of buyers increasing.
AHDB livestock analyst Hannah Clarke said: “Store lamb prices have remained remarkably strong this season, with the GB average peaking at more than £80 a head in the middle of July, and currently averaging close to £75 a head.
“The finished price has undoubtedly been adding confidence and support to the market, as has plentiful grass in parts of the country.”
Throughputs of store lambs to the end of September are 5% lower on the year, but lambs seem to have come forward slightly earlier this season, potentially spurred on by competition for tighter numbers nationally, said Ms Clarke.
Retail purchases of lamb
GB average retail prices of lamb for the 12 weeks ending 3 October were up 3.6% year-on-year to average £9.18/kg, according to the AHDB’s retail dashboard.
Despite this increase in average prices, volumes of lamb sold at retail during the 12-week period were down 8.5% compared with 2020, when more Covid-19 lockdown restrictions were in force. Despite this, total lamb volumes sold at retail are still up on pre-pandemic levels.
During the past 12 months, retail spending on lamb was up by 8.7%, at a total of £929m.