By FWi Staff

SHEEP quota prices appear to have stabilised after recent volatility at the start of the trading period. Further falls have been seen, with Welsh less-favoured areas (LFA) dropping most. Some areas have, however, made a small recovery.

The price of lowland quota has eased a further £1 to £12. English LFA quota has risen £4 to £30, while Welsh LFA has plummeted a further £8 from a fortnight ago to £27.

Leasing prices have done rather better, with Lowland quota inching up £2 to £5. English LFA made a strong recovery, climbing £4 to £10. This is now just £1 below its price when the new trading period started a month ago.

This is as predicted, said one quota trader, in anticipation of next years amalgamation of the ring-fences. However, at the moment it is still only a proposal and not a guaranteed change. Welsh LFA eased slightly to £7.

There continues to be a shortage of available quota in the lowland ring-fence, stressed a spokesman for Townsend Quota Plan, “although it is early in the trading year, and more is expected to come.”

Ian Potter Associates noted that interest in quota continues to be strong.

The current percentage for usage is 70%. This needs to be met by either claiming premium or leasing out the quota to retain producers full quota units for future years, recommend Ian Potter Associates.