Lamb trade hits £7/kg despite competition from imports

Base prices for finished lambs pushed back above £7/kg deadweight at abattoirs in early December for the first time in several months.

Tight supplies and improved demand for lamb throughout November have helped to buoy up the trade.

However, the recent price rally may be short-lived, with talks of price cuts by major meat processors in the past week as both retail and export demand start to ease.

See also: Flying beef trade at Winslow Christmas Primestock Show

Throughputs at GB abattoirs remain low with roughly 15,000 fewer lambs coming forward each week at present.

The liveweight SQQ averaged 320p/kg at auction markets across England and Wales in early December, according to figures from the Livestock Auctioneers Association, back marginally on the previous week.

Auctioneers say well finished heavy lambs are still seeing top prices, while leaner types are proving harder to sell.

Import volumes

An influx of imports from the Southern Hemisphere are also thought to be weighing on the domestic lamb trade.

HMRC figures show lamb imports coming into the UK were 6.6% higher in volume at 65,000t during the first nine months of the year, and 31% higher in value at £365m.

Australia alone exported 19,000t of sheep meat to the UK between January and September this year, up by 36% on 2024 levels.

Figures from Meat and livestock Australia show Australian exports to the UK ramped up again in the run up to Christmas, with 1,500t of lamb being exported during November.

There may be some respite for domestic producers though with a tightening gap between sheep prices in the UK and in the southern hemisphere, which could encourage these major exporters to focus on other global markets.

Tom Spencer, analyst at the AHDB said: “Southern hemisphere sheep meat supply is likely to tighten heading into 2026 as both Australian and New Zealand flocks are expected to contract.

“Reduced mutton throughput in Australia and ongoing flock contractions in New Zealand suggest continued constraint on export availability despite robust demand.

“At the same time, high farm-gate returns, and heavier carcasses indicate strong price floors globally.”