Demand for lamb keeps creeping up
Demand for lamb keeps creeping up
By James Garner
DEMAND for lamb on the Continent, rather than actual trade, is helping market prices piggy-back their way up to new highs.
Stimulating demand is Europes deepening and widespread lack of confidence in beef, which has been widely substituted by lamb, particularly in France. But, the bounce in UK lamb values is probably more to do with tight supplies, than actual numbers being sold over the Channel.
The Meat and Livestock Commission reports that Mondays SQQ, the average market price, closed up on the week by 2.9p at 115p/kg, although numbers forward fell by 11%.
Even so with a 47% killing out percentage, deadweight base prices should equate to 245p/kg.
But the export market is becoming more complicated and it appears that numbers may not be as high as previously thought. Figures from the MLC on lamb meat sales abroad show to Jan 27, 6800t was sold, 13% down on the same period the year before.
Richard Cawthorne, head of Invicta Lamb, Lamberhurst, Kent, reckons demand for UK lamb currently exists in Germany, France, Belgium, while Portugal is only mildly interested.
Greece does not want any UK lambs and Spain has its own new season lambs forward.
"These are being exported to southern France to the detriment of UK supplies," he says.
"France is a fairly volatile market, because it is subject to outside influences, such as the advent of Spanish product.
"In about six weeks time, Irish new season lambs will be available to the French, and so will their own milk lambs."
French milk lambs are a by-product of the sheep cheese business and although poor quality, in a fiercely nationalistic market will replace British hoggets to some extent.
Despite this the price has stayed firm. A spokesman for The Irish Food Board, Bord Bia, says that Irish lambs into Frances principal meat market, Rungis were making 26-27FF/kg (252-262p/kg), up on the previous week by 10-15p/kg.
While export demand is putting upward pressure on home prices, there is no net margin for exporters sending them across the water, says Mr Cawthorne.
"Domestic retailers get the supply and quality they want, because they can afford to pay more for lambs than exporters shipping meat abroad."
On the home market, one trade insider agrees that desired quality and numbers are hard to come by.
"There are fewer sheep about in the lowlands and the wet weather this winter has made rearing lambs a hard task. Light lambs are under-finished and heavy lambs have run to fat." *
LAMBTRADE
• Exports more difficult.
• UK Supplies tight.
• Prices holding firm.