LITTLE CHEER IN LAMB MARKET
LITTLE CHEER IN LAMB MARKET
THERE are few sheep producers who can be looking forward to lambing time. With lamb prices at rock bottom, theres little to cheer about.
The industry is facing challenges it has never had to deal with before – the introduction of new legislation requiring removal of specified risk material from sheep showing permanent incisors and the prolonged strength of sterling.
Both have affected the lamb market, the SRM regulations hitting hardest. With many finishing lambs still on-farm, the MLC warns in this Update that it is vital to check teeth before sale and to group lambs accordingly.
More worryingly, the cull ewe market has virtually collapsed under the new arrangements. Some abattoirs have given up buying ewes altogether, justifying their decision on the cost of removing and disposing of SRMs, coupled with the difficulty in finding a market for cuts of mutton.
Surprisingly, given with the strength of sterling, latest MLC figures show that exports were down only 14% on 1996 levels. It seems that the French preference for grass-raised lamb means they are willing to pay for UK produce, and that must be good news.
But current prices mean prospects for new seasons lamb look less than rosy. Early lambers will wonder whether theres any margin to be made on a system where high cost inputs can only be justified by good market prices.
A thorough look at creep set-up and feeding may be one way to help ensure efficient finishing; creep costs vary tremendously, with some producers spending almost twice as much as others to achieve the same performance. Efficient finishing – and in particular, getting the most from creep – is discussed here.
But its not all bad news. Work by the Heather Trust has shown that hill producers adopting a planned programme of moor burning can increase ewe output, reduce the need for supplementary feeding, as well as increasing bird numbers. This should help generate better returns in a cash-strapped sector.
Genetic progress is another, more permanent route to improved profit for all sheep breeders. Work at Wye College – covered in this Update – shows that selecting the best progeny for further breeding pays dividends. Better growth rates and an improved carcass to sell both help ensure maximum returns from the same level of inputs.
The sheep sector is undoubtedly in for a tough time this season. But at least there is some good news – and its more than welcome in such a depressed market.