Lamb prices under pressure
Higher carryover stocks of lambs, reduced demand, and imports are all adding pressure to farmgate lamb prices.
A report by Welsh levy board Hybu Cig Cymru (HCC) – Meat Promotion Wales – shows how dry weather in 2022 led to lambs taking longer to finish, which has left a larger number of old-season lambs to come to the market in 2023.
In a typical year, the UK processes about 77% of the lamb crop by the end of that year, according to HCC figures. However, by December 2022 that had slipped to about two-thirds.
As such, some 4.3m lambs are expected to come forward between January 2023 and April 2023.
HCC analyst Glesni Phillips said: “When compared to the 2021-22 lamb crop, this is a 13% increase [or 513,500 head] in the number of lambs left to be slaughtered, and an additional 25% when compared to the 2020-21 lamb crop.
“This would suggest there is a higher carryover of old-season lambs into 2023, which will likely apply pressure to farmgate prices.”
The GB liveweight lamb SQQ averaged 219.73p/kg on Friday 27 January, down by 14.9p/kg on the week and more than 40p/kg below the same week last year.
However, industry stakeholders suggest that last year’s drought may have had an impact on scanning percentages for early lambers in some regions, so the number of new-season lambs coming to the market in early 2023 may be slightly lower than expected, which could offer some support to markets.
Charlie Reeve / Farmers Weekly
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