Lamb trade starts to falter after months of strong returns
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Livestock farmers have received a decent return for lambs so far in 2024, with finished deadweight prices staying above £8/kg since mid-March.
However, as new season lambs start to come through in greater numbers, its unclear how much longer the trade will be able to hold.
See also: Beef price falls to 480p/kg but scope for summer surge
The new season lamb deadweight SQQ fell by 43p/kg to 849.7p/kg in the week to 1 June.
Likewise, old season lamb prices dropped back by 23p/kg to 794p/kg.
Throughputs increased slightly on the week as more spring lambs started to come forward, but overall, supply remains tight as present.
Looking ahead, lamb throughputs are likely to increase throughout the summer months and peak later in the Autumn.
This will add some pressure on returns and, combined with reduced demand from buyers, may lead to prices slipping.
Stuart Vile, ruminant manager at livestock marketing group Meadow Quality said prices were already under pressure, especially for hoggets, as more spring lambs come to the market.
Mr Vile added that demand, especially for halal meat, had been very much helped by religious festivals, and it was uncertain what will happen to prices from mid-June onwards.
Lamb imports
More shipments of lamb from New Zealand and Australia are forecast to reach the UK market following disruptions to shipping routes earlier in the year.
Between October 2023 and April 2024 alone, New Zealand exported 22,718t of lamb to Great Britain, up by 60% on the same period of the previous year, according to figures from Beef and Lamb New Zealand.
Sheepmeat exports from Australia to the UK were 65% higher on the year during the first quarter of 2024 at 3,500t, but this was still below 2022 volumes.
Australia is able to send up to 30,500t of sheepmeat to the UK through the free trade agreement this year, although industry is not expecting the quota to be filled.