Kelso average rises again to smash £1,200 mark

Commercial prime lamb and breeding sheep producers were out in force last week to lift the famous Kelso tup sale average up £173, smashing last year’s record.

Notably, the £1,229 average included lower top prices (see table) as farmers pushed averages up across the board.

See also: Inconsistencies in border inspections ‘crippling’ meat industry

Shearling trade included a Beltex average of £1,042 (+£224), while registered Texels averaged £1,844 (+£191) and the Charollais and Suffolk entry levelled at £853 (+£103) and £1,330 (+£28) respectively. An entry of 393 crossbreds averaged £1,061 (+£242).

Bluefaced Leicesters averaged £1,557 (+£98) and Border Leicesters averaged £808 (+£101).

Auctioneers say sufficient confidence and cash is present in the industry after a summer of high lamb prices.

This is despite imports increasing 36% on the year to 46,354t, and exports dropping 6.6% to 45,749t compared to last year to the end of July.

Factors for a strong breeding sheep trade are:

• Prime lamb value: AHDB figures show a deadweight price 80p/kg higher on the year through August. This followed record-level spring hogg prices that continued into late May, peaking at 893p/kg, making a 21kg carcass worth £187. This meant more breeding hoggs were sold than normal, reducing the quantity available for autumn sale.
• Prime lamb supply: The UK breeding flock is at its smallest since records began in 1996, at 13.8m head. August lamb slaughter figures (Defra) are back 8.7% on the year at 930,000-head. AHDB analysts predict a 3% fall in total sheep meat production in 2024.
• Production challenges: Bluetongue and Schmallenberg have dented lamb production in the UK and in Europe, where one third of UK sheep meat goes.
• Tight EU supply: Lamb prices are 15.6% higher as of the end of August as an EU average at £6.99/kg. Breeding sheep numbers are falling annually in the EU, reaching 55.9m head last year, 8.5% lower than 2013.