Lamb prices unsustainable – NFU analyst

By Andrew Shirley

CURRENT lamb prices are unsustainable and may force sheep farmers to question their commitment to the industry, warns a senior NFU analyst.

Values have slipped significantly since the middle of September and are languishing at a mere 141.3p/kg – a 17% drop on last years price.

“It doesnt make sense when you compare farmgate prices with a supermarket shelf price that has hardly fallen,” says Kevin Pearce, head of livestock at the organisation.

However, Kevin Hawkins, communications director at Safeway, says oversupply and not the supermarkets are to blame. “The price we are paying our suppliers has not dropped at all.”

But Mr Hawkins also believes uncertainty is keeping prices artificially low. “I do feel that prices will come back up soon and could be more than 2/kg after Christmas.

However, a spokeswoman at the Meat and Livestock Commission was less optimistic: “I cant see it improving until the export market resumes.”