NI lamb price is falling short of costs of production

The returns farmers in Northern Ireland (NI) are receiving for their lamb is lower than the cost of production, the Ulster Farmers’ Union has warned.

Pat McKay, beef and lamb chair, has said an increase is needed in the price to help producers sustain their farm businesses as the cost-of-living-crisis bites.

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NI processors had last week been quoting prices between 510-515p/kg, however, they are still only paying up to 21kgs.

“Farmers need a return for lambs up to 22kg,” said Mr McKay.

“It is in everyone’s best interests that NI processors work in a manner that instils confidence in our farmers, showing their support for the primary producer when they are evidently struggling with the increasing cost of production.

“It’s unfair to turn a blind eye to it and expect farmers to absorb the extra costs alone while producing the high-quality lamb processors and consumers expect at the same time.”

There has long been a differential in the price paid for lamb in NI, compared to the price paid in Great Britain.

Figures from the Livestock and Meat Commission show that, in the week ending 22 October, the deadweight price was averaging 499p/kg in NI, versus 523p/kg in Great Britain and just under 534p/kg in the Republic of Ireland.

Mr McKay warned that if the issue of farmgate prices was not tackled, it would have a severe impact on farming businesses and the sector as a whole.

“Live markets have seen an increase in prices over the last few weeks and I urge farmers to consider all options available to them in order to maximise their returns,” he added.

“When selecting animals for sale or slaughter, batching animals according to live weight and condition can help generate a better return. The killing percentage for grass-fed lambs has been poor and farmers need to be careful when selecting.”