Depressed lamb prices continue to slide
© Tim Scrivener Fat lamb prices have carried on their downward slide after creeping up over the #NoLambWeek protest.
The British standard quality quotation (SQQ) average dropped 5p/kg in the week to 19 August.
The price of 145.5p/kg was 17p/kg lower than the same week in 2014 – keeping returns well below most farmers’ cost of production.
See also: British Lamb Week aims to cheer struggling farmers
Auction marts saw 1% fewer lambs marketed than the week before, though this was slightly more than the same time last year.
Direct trade to abattoirs has been more positive.
The deadweight SQQ jumped 3p/kg in the week to 15 August – the second increase running.
Latest analysis from AHDB Beef and Lamb shows how the strong pound and healthy supplies continue to pressure on sheepmeat markets.
Lamb slaughterings in July were 2% higher on the year at 1.3 million head. This was most for the month in six years.
Heavier carcass weights pushed total production 5% up on 2014 levels – also a seven-year high for July.
AHDB estimates that every 1p drop in the value of the euro against the pound pulls down British liveweight lamb prices by 3-4p/kg and deadweight by 8p/kg.
The 17p decline in the euro over the past two years might have led to a 60p/kg drop in lamb returns, the levy board said.
Prices have actually fallen 45p/kg – but it underlines how the UK industry, which exports 40% of its lamb, is highly exposed to currency movements.