NFU challenge over ‘great lamb robbery’
The widening gulf between farmgate and retail prices of sheepmeat have been dubbed the “great lamb robbery” by the NFU.
The union says that farmgate prices have dropped by nearly one-quarter, wholesale prices for UK legs of lamb are down 17%, yet prices in the shops for UK product have only fallen by 2% during the same period.
NFU livestock board chairman Charles Sercombe said the farmgate price for UK lamb was not viable in a period where sheep farmers have seen their costs rising.
“Many of our sheep farmers, particularly those in the uplands, have been experiencing a major downturn in lamb prices, which I fear will drive confidence out of the industry,” said Mr Sercombe. “I understand their frustrations at a time when they’re also dealing with rising input costs and poor weather.
“Consumers also want to see competitively priced UK product on the supermarket shelves. But the present situation is not sustainable.”
Mr Sercombe said the NFU had written to all major retailers urging them to show long-term commitment to the sector.
“Currently farmers are suffering, and consumers aren’t benefitting, so just who is reaping the rewards of the great lamb robbery?” he said.
The NFU has also highlighted that the gap in prices is not just confined to UK lamb.
Figures show the wholesale price of New Zealand lamb has dropped 23% (year on year), and yet the retail price for consumers has only come down 12% in the same period.
With latest figures for November showing the highest level of imports since 2006, the NFU will this week be meeting with officials from Beef and Lamb New Zealand to discuss global market conditions and try to understand the issues New Zealand farmers face.