Buyers respond to underfinished lambs with two-tier trade

A 40% jump in concentrate costs has turned the supply of lamb on its head, with markets reporting premiums for well-finished lambs and leaner sorts being discounted.

Only two months ago the market was awash with heavy old-season lambs after a mild winter.

Now, low throughputs – back 22%, 33% and 15% in the year for the past three weeks – have been blamed on a cold, wet May and record feed prices.

Some farms have weaned lambs and sold cull ewes early to capture strong national cull ewe averages of £120 a head.

May rainfall has helped grass covers, although some areas of England, particularly southern and central regions, are now dry.

See also: Rising costs strain farmer and retailer relations on pricing

300p/kg for South West

In the South West, where the market is earlier, the prime lamb SQQ has been pressured in recent weeks as more younger lambs have become available in Wales and northern England.

With many farms opting out of supplementary feed, a lift in supply last week pressured prices as December- and January-born lambs continued to come forward.

Trade was at 300p/kg across the region, said Chris Clapham, auctioneer for Stags. Abattoirs were reporting falling kill-out percentages and lean lambs, he added.

Mr Clapham stressed that heavy lambs were in short supply. Those at 41-42kg had made about £120, with £130 for those at 43-44kg.

“People have had difficult decisions to make about buying cake,” he said. Last week (16 June) saw 1,373 fall outside an SQQ, with 277 heavy lambs at 307p/kg.

He said that until now the weather had been kind, with a rain spell following a dry lambing time.

St Asaph

Lambs have generally been well finished in North Wales, where regular and timely rains have been enjoyed, according to Sion Eilir, prime sheep and cattle auctioneer for Jones Peckover at St Asaph.

Export trade was supporting prices well beyond the 400p/kg mark for the best Beltex export lambs.

Last week (16 June) 10 pens made more than 450p/kg, 27 made more than 420p/kg and 57 pens made more than 380p/kg.

A total of 92 pens saw lambs grossing £150 or more, and 11 pens saw prices at £180. The top pen of 41kg Beltex-cross lams made £208.

“There’s a big difference between well-finished lambs and the leaner lambs,” said Mr Eilir.

“Smaller lambs at 30-34kg have been harder work in recent weeks. Because the price has dropped in p/kg, people will try to hold them and make them heavier.”