Welsh lamb and beef prices optimism
Wales’ lamb and beef producers will see prices remaining buoyant in 2012 thanks to limited global supplies and increasing demand in emerging foreign markets.
Red meat promotion agency, Hybu Cig Cymru, expects market returns for branded Welsh lamb and beef to hold at a higher level than in the first decade of the 21st century.
Although the number of lambs in Wales increased by 10% in 2011, it is not enough to satisfy growing global demand for lamb.
According to HCC Chief Executive Gwyn Howells, the same is true of beef cattle. And despite improved returns, the cost of inputs such as fuel, feed and fertiliser, have all increased above the rate of inflation and are biting into farm returns, he added.
About one third of Welsh lamb is exported, the majority to Europe, so any major disruption in the Eurozone could impact on businesses.
“We are keeping a close eye on developments in the Eurozone, but the evidence gathered so far suggests that it is not having an impact on sales. In fact our export trade grew in 2011 compared with the previous year, and I am looking forward to seeing the final figures when they are published in February,’’ said Mr Howells.
HCC is optimistic that the industry will gain access to the potentially huge Chinese market in the near future and is also hoping to develop markets in Russia, the Indian sub continent and the USA.
“It is our job, along with the processing companies and with the assistance of the Welsh Government, to tap into these emerging markets to help maintain the returns enjoyed by Welsh farmers and create new business opportunities for processors,’’ added Mr Howells.
HCC’s confidence in the market has been welcomed by Wales’ livestock producers.
Roger and Neil Perkins run a flock of 1600 ewes and 400 ewe lambs at Dinas Island Farm in north Pembrokeshire. They are delighted that the market for their lamb remains strong but say returns are at a fair, not excessive level.
“The talk is of lambs doing well but they are only doing as they should be. Before this, making any money out of sheep was near impossible. The prices we are being paid now are what we need to cover the cost of production,’’ says Neil.
“Even on a low cost system the cost of inputs such as fertiliser and making silage have been shooting up and we have also got to look around the corner to when our subsidy cheque will be drastically reduced.’’
