Beef and sheep sector reinvigorated by strong trade and rainfall

With grass in short supply, a welcome deluge of rain has brought relief to livestock farmers, easing grazing pressure and increasing confidence in the sector ahead of key breeding sales.

Finished prices have also held firm, with both beef and lamb lifting in the past week.

The GB deadweight lamb SQQ increased by 13p/kg to 744p/kg for the week ending 19 July.

See also: Cull ewes in demand as buyers compete to secure stock

Prices are now back above last year’s levels and are currently trading almost £1/kg higher than the same week last year.

A stronger finished trade could help bolster prices for ewes as early breeding sales get under way at Thame, Bentham and Carlisle in the coming week.

Alister Davies, UK beef and sheep commercial manager at ForFarmers, said: “Looking at previous sales it’s very clear to see the better grown and better presented animals reach the highest prices.

“This could be particularly true this autumn as bluetongue rules have stopped stock movements from England into Wales. However, no doubt there will be a strong breeding ewe trade this autumn, driven by the fantastic cull ewe trade witnessed this year.”

He added that more lambs might come to market in the coming months despite a reduced national ewe flock, largely due to fewer losses during lambing.

Mr Davies said: “In 2024 there was a phenomenal store lamb trade but as the ‘magic £200 hoggets’ never really materialised, it is unlikely the large scale store lamb buyers will be as strong in the market this year.”

He suggested it was looking more attractive for farmers to finish lambs at home, with meatier types commanding a price premium across the UK.

“Lambs have generally grown well. Many have been sold off their mothers and for those left, weaning weights are good so it won’t take a lot to finish them,” said Mr Davies.

This was backed by figures from the Welsh red meat levy board Hybu Cig Cymru (HCC), which found the total number of sheep and lambs processed at UK abattoirs was up by 3% during the first half of 2025 at 6.3m head.

HCC business analyst Glesni Phillips said: “Both the beef and sheep sectors will likely experience price volatility as production levels remain constrained in the latter half of 2025.”

Beef

Beef remains in tight supply, with total cattle throughputs at UK abattoirs down by 4% during the first half of the year to total 1.3m head.

Cattle prices have held firm with deadweight steers averaging 640.1p/kg in mid-July and stores also selling well.

Andrew Hunter-Blair, auctioneer at Craig Wilson in Dumfries & Galloway, said: “Prices hit a peak in June, with store cattle being sold for £400-600 more on the year and heifers with calves at foot averaging up to £1,000 more.

“We’d anticipated the price would drop over the summer, which it has, but it’s still higher than it was last year and from sales last week it looks like prices are starting to pick up again.”

Murray Steel, auctioneer at United Auctions, added that the trade was seeing the impact of the low supply and rising demand, with a lack of cows in the suckler herd both domestically and globally.