Experts hopeful sheep trade will pick up

The current dip in the sheep market is a short-term problem, according to one industry expert.

Norman Bagley, head of policy for the Association of Independent Meat Suppliers, whose members deal with 75% of the UK lamb kill, said the fact there was still competition – because the supermarkets didn’t control the sheepmeat market – put sheep producers in a strong position compared with other species.

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“We are going through a short-term problem. Things can change. The currency can move in our favour. There will hopefully be demand from Turkey and China and we need more value to come back into the by-products.

“When beef was £4.20/kg and lambs were £120-£140, my members were blowing fortunes. We had gone through the glass ceiling of what consumers would pay,” he said.

Speaking at the North Sheep event in Cockermouth last week, Mr Bagley compared 2015 prices with last year’s and said it was important producers understood the reasons for the current low prices.

“This time last year, skins were worth £11-£12 and are now worth £2; the currency changes have shaved another £10 off the price. Waste material was costing virtually nothing to dispose of, whereas now it coss £100/t. The fifth-quarter was worth £3 and is now worth £1.

“Abattoirs now have a £27-a-head negative turnaround compared with a year ago,” said Mr Bagley.

While he said he believes future prospects for sheep producers are good, he had to admit that his abattoir owners were telling him they needed lambs to be at £65-£70 a head to give them some profit and to move more volume.