Lamb trade fears Australian imports could topple firm market

Many sheep producers’ Christmas wish lists will have an end to bluetongue virus and continued goodwill between China and Australia written firmly at the top.

Fears that containers of Australian lamb will flood the market have mounted across the UK after the country’s sheep slaughter rocketed 28% above the five-year average in September.

An El Nino (drought) forecast caused a fire sale of livestock, which exacerbated an oversupplied market due to abattoir staff shortages.

Average lamb values plunged to little over £2/kg deadweight, but have since recovered to nearer £4/kg.

See also: Lamb trade holds firm in build-up to Christmas

Cheap Australian imports pose a growing threat as the volume of tariff-free lamb increases annually as part of the free trade deal with Australia.

However, economists have played down the impact of the deal, providing current export channels are maintained.

Australia can ship up to 14,700t of lamb to the UK tariff-free this year.   

Meanwhile, trade reports are that bluetongue virus (BTV) in mainland Europe has increased demand for British lamb. The Dutch flock has reduced by more than 5%, including outbreaks on the island of Texel.

Cases have subsided from a high of 280 ongoing infections in late October to fewer than 70 in the last week of November as cold weather slowed midge activity.

Stable prices 

Welshpool Livestock Sales has reported strong demand across home and export accounts and a liveweight SQQ 2.8p/kg up on the week at 260.3p/kg on Monday (11 December).

Sheep auctioneer Jonathan Evans said: “I think there are fewer lambs about across the country as a whole this year.

“I wonder if there will be a hole in the supply before the fed lambs come into the market in a couple of months’ time.

“And after last year’s poor scanning results we expect things to tighten, although they’ve been easy to find up to now.”

He said Australian lamb imports were a concern, but added there was a “particular interest” from Portugese importers for small (28-38kg) Welsh Mountain hill lambs this year, which were making 230-240p/kg lw.