Sheep farmers in for a tough time – FWi PREVIEW OF 19
By FW reporters
DOWNWARD pressure on prices will be a
major talking point among sheep producers this January as the market is
hit by an expected backlog of animals kept by farmers hoping for price
improvements.
Over the coming three months, 600,000 more hoggets
could be marketed than in the corresponding period of 1997. Thats
nearly a 20% increase. And some of them will be over-heavy and over-fat.
But the advice from the Meat and Livestock Commission is simple:
sell them as soon as they are fit and ready. Delaying could mean bigger
losses.
Stock cleanliness will be another big issue, particularly on
traditional finishing systems such as roots. But its one well worth
concentrating on because, dirty sheep are likely to be discounted or
unsaleable.
Overall, this year is likely to see prices below those
of 1997 which, in turn, was a disappointing one for farmers compared
with 1996. This is likely to be reflected in the traditional spring peak
in trade, which could struggle to reach 1995s 120p/kg.
On the
supply side, clean sheep slaughterings are expected to hit 16.35 million
in the coming 12 months, an increase of 7%. This reflects a small
expansion of the breeding flock, a fall in live lamb exports and
slightly reduced ewe lamb retentions.
Ewe and ram slaughterings,
however, will fall another 4%, after a 20% drop in 1997.
Sheepmeat
consumption, meanwhile, is expected to remain steady, after its 5% drop
in 1997. But with this sector recently in the headlines over a possible
BSE link, and Brussels angling towards the removal of spinal columns
from older animals, sheep farmers will be entering the new year in a
justifiably nervous mood.
Producers should not that tighter
Specified Risk Material control measures for lambs over 12-months old
came into effect on January 1, following suggestions of a link between
BSE and sheep. With dentition the means of ageing stock, those sold with
erupted incisors could be discounted because of the additional costs
involved, the MLC warns.