Recently in Lamb Category

The 2012 lamb market will remain strong despite a slightly larger UK flock and increased availability from New Zealand, but will not reach the heights of 2011, according the latest EBLEX annual outlook.

There was a 1% increase in breeding ewe numbers in 2011 to just under 14.9 million, according to final results from the June survey, and the December survey is expected to show further growth in 2011 and 2012.

“This is anticipated to result in the largest lamb crop since 2008, although still some way short of that peak in production as a result of lower store lamb carryover and mutton levels,” said Debbie Butcher, senior analyst.

“However, it is too early to determine what the impact of the Schmallenberg virus will be on the lamb crop. As an emerging disease everyone is monitoring its effects with concern.”

UK sheepmeat market figures

(carcase weight equivalent - tonnes)

	2009	2010	2011	2012 (forecast)
Production	307,000	277,000	289,000	290,000
Imports*	137,000	121,000	102,000	108,000
Exports*	99,000	93,000	102,000	104,000
Consumption*	345,000	306,000	289,000	294,000

*Including processed sheepmeat products

Higher margins can be earned by Less Favoured Area sheep producers who
concentrate on achieving better physical performance, which is the biggest driver of better results, says EBLEX.

Net margins for LFA breeding flocks rose by nearly £4 a ewe to £7.80 a head in the year to the end of March 2011. Poorer performing flocks could significantly improve returns by lifting rates for lambs born and reared per 100 ewes, return per lamb sold finished and lamb weights.

However, producers still need to watch costs - there is a £5.83 a ewe difference in labour costs between top and bottom third producers, according to EBLEXs' Business Pointers report.

Business Pointers will shortly be replaced by a new free costings service called Stocktake, for which EBLEX is recruiting producers.

Holding onto lambs for too long in pursuit of rising spring prices and extra weight could carry a greater risk than ever this season, warns EBLEX. Exchange rate volatility is likely to make export lamb buyers more cautious and more choosy, making the right weight and finish crucial for premiums.

Although export markets have a wide range of specifications, market options for lamb carcases drop markedly at weights of more than 21 kg and classifications beyond 3L for fat, says EBLEX.

Most of the weight gain in heavier lambs will be in fat, which requires more energy to put on than muscle and so increases costs as well as risk, especially when finishing margins are so tight.   

The risk of producing overfat animals is greater with lambs than in cattle or pigs, so handle at least every fortnight and then every week as they approach market quality.
Marking and then weighing representative groups every seven to 7 to 14 days provides a useful extra check on progress.

“You can win ... you can grow … you can be one of the food industry’s great success stories,” was the positive message from Joanne Denney-Finch to producers at Quality Meat Scotland’s conference this week.

IGD’s research showed that farmers were viewed as hardworking, down to earth, professional and vital to the future, said chief executive Ms Denny-Finch.

“I find farmers are usually very pleasantly surprised to discover just how staunchly they’re supported by the public!”

But shoppers hunting harder for deals create complications for retailers and their suppliers, she warned. “Demand is going up and down in waves … sales are harder to predict and profit margins are regularly squeezed.

“Red meat has been relatively less affected and you’ve been spared some of these problems although you could lose out on sales. So if not through price cutting promotions … you will need to keep finding other ways to grab attention and convince shoppers of the value you offer.”

Sheep producers received a bigger share of the retail price for lamb in December 2011, but beef and pig farmers saw little change, according to AHDB’s latest UK Market Survey.

Strong export demand and tight supplies saw the average deadweight ex-farm price for lamb increase by 42p/kg in December compared with the month earlier. Over the same period the retail price declined slightly, so producers received almost 60% of the final retail price, up 6% on the month.

Overall during 2011 producers received 59% of the retail price, compared with 55% in 2010.

Beef producers received on average 54% of the final retail price during December, 1% down on the month, but 5% higher than December 2010. Pig producers saw a smaller improvement on the year (up 2%) and still receive a much lower share. The average ex-farm deadweight pig price equated to just 39% of the retail value in December.
 
 

Dorset-based beef and lamb processor RWM Foods lost a major retail order just as the group was bought by ABP, it has emerged.

RWM said it was told of the cancellation of a “substantial order” for retail packed meat from a major multiple retail customer in the same week that the deal with ABP came into effect (9 October).

It did not reveal the name of the customer or why the business was lost but said the lost order represented over half the production at the Yetminster facility and consultation with staff at the site had begun.

“We intend to make a powerful case to reverse this decision, win back the business and prevent significant job losses,” a spokesman said. The lost order would have no effect on Blade Farming’s operations, he said.

Morrisons Traditional Breeds Beef Range hits the shelves this week, promoting quality cuts from native British cattle.

Two hundred farms have been producing Shorthorn, Hereford, Aberdeen Angus and finished stock from many other native breeds for the chain.
 
Consistently high eating quality in flavour and texture through marbling is the aim, with a special diet and 21 day maturing on the bone part of the plan. All of Morrisons’ fresh beef, lamb and pork is British.

Home produced beef and lamb are taking a bigger share of supermarket chiller cabinet space. The latest Eblex Beef and Lamb Watch survey, carried out in supermarkets during August 2011, showed 83% was British produce.

This is the highest level since the quarterly survey was started in its current form in August 2008. It also found that 56% of beef and 65% of lamb packs carried the Red Tractor assurance logo.

“There has been a consistent improvement in home sourcing of beef and we now look to see this commitment carry on into the future,” said Alistair Mackintosh, NFU livestock board chairman.

“We will remain vigilant on pack labelling including retailer support for the use of the Red Tractor logo, to ensure customers can continue to buy beef and lamb produced to leading standards of food safety and animal welfare.”

 

Maximising returns from beef and sheep is the aim of a new joint publication by EBLEX and the NFU.

‘A Farmer’s Guide to Selling Finished Beef and Sheep’ provides a checklist covering market requirements, assessing stock against market needs, monitoring prices and booking stock in correctly with abattoirs.

It also covers documentation, identification and ensuring stock is fit for intended purpose. The guide can be downloaded from www.eblex.org.uk, or request a hard copy by emailing admin@eblex.org.uk or telephoning 0870 241 8528.

 

A big rise in exports saw more than 67,000t of fresh and frozen beef leave the UK in the first six months of this year.

Trade is up by almost 40% in volume and 33% by value, according to the latest HMRC figures, which also show imports are down.

Lamb exports already account for about 30% of production and rose by a further 5.8% to 41,296 tonnes in January to June this year, with the value of this trade increasing by 13%.

Beef imports to the UK fell by 2.7% and sheepmeat imports by 18%.