Recovery – but how long can it last?
Recovery – but how long can it last?
By Simon Wragg
A weaker £ and wet weather have helped lift lamb prices. But with the number of lambs being sold expected to rise, further pressure on values is predicted.
According to Meat & Livestock Commission figures for the week ending June 8, the average price had improved by 1.5p to 102.5p/kg liveweight, although that is almost 10p/kg down on last year.
A weakening of the £ coincided with stronger domestic lamb trade in France to give UK suppliers an opportunity to increase exports.
But the overseas market is unsettled. Continental wholesale prices rose sharply from the equivalent of 201p/kg deadweight at the end of May to about 218p/kg last week, says the MLC. With UK and French lambs now similarly priced, export volumes could be affected unless the £ weakens further.
Irish supplies still provide stiff competition and there is little sign that numbers are drying up as earlier predictions suggested.
However, some UK export markets are growing; the MLC points out that sales to Italy grew by 37% in the first four months of this year to 1000t.
Domestic prices are also fluctuating. After a slow start last week, values rose by about 6p/kg liveweight before settling back again.
According to Peter Booth of Shrewsbury market the rules of supply and demand have helped. With many farms trying to get silage finished, fewer lambs were sold. "As grass work ends, more will be finished, especially if they get a bit of sun."
This weeks trade averaged a disappointing 95p against 104p/kg last week, but was in-line with the national trend.
At Welshpool the weekly entry was up marginally and buyers accommodated extra lambs without affecting last weeks overall average of 101p/kg.
But auctioneer John Jones says that sort of money is hardly enough to give farmers a decent return.
"Many are still looking to get lambs away quickly but the weather has been against them.
"If it improves, I dont know if the trade will cope. Prices will probably come back further," adds Mr Jones.