Fears Australian lamb imports could topple firm market
Many sheep producers’ Christmas wish lists will have an end to bluetongue virus and continued goodwill between China and Australia written firmly at the top.
Fears that containers of Australian lamb will flood the market have mounted across the UK after the country’s sheep slaughter rocketed 28% above the five-year average in September.
An El Nino (drought) forecast caused a fire sale of livestock, which exacerbated an oversupplied market due to abattoir staff shortages.
Average lamb values plunged to little over £2/kg deadweight, but have since recovered to nearer £4/kg.
Cheap Australian imports pose a growing threat as the volume of tariff-free lamb increases annually as part of the free trade deal with Australia.
However, economists have played down the impact of the deal, providing current export channels are maintained.
Australia can ship up to 14,700t of lamb to the UK tariff-free this year.
Source – Farmers Weekly
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