Agribusiness News July 2022: Sheep

Trade decreases

The typical seasonal decline of the lamb market has started, which often happens after the Highland Show.  Market signals are reporting strong trade both domestically and globally, which is perhaps why the price remains above the previous years.

Given the cost of creep feed, many have chosen not to offer it this year and rely on grass alone.  This may result in a slower throughput of spring born lambs, which should aid in sustaining the price.  However, this may mean later in the season, a large volume will come to the market at the same time, causing an excess, which could drive the price down.

EU market

UK lamb is currently valued lower than some countries in the EU, for example,

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This makes our product favourable, leading to a strong export market.  AHDB has reported that total UK exports in April 2022 were 2.5% higher than March and 33% higher than April 2021.  From the 6.9 tonnes exported, France took 3.6 tonnes, which possibly reflects the number of countries using France as a port for importing UK product.

Exports are outweighing imports so far this year, with the most noticeable increases of product coming from Australia and Ireland.  Interestingly, the Irish price is holding well,

*currency exchange euro to pound 0.862

Eid–al-Adha – the Muslim festival Eid-al-Adha (Qurbani) will be from 9^th – 13^th July this year.  This festival is of huge significance to the sheep meat industry with a large volume of sheep meat being consumed during this period.

The slaughter of the animal should occur within the 3-day festival, meaning it is a small marketing window for the sector.  There are also strict guidelines for the animals, including, being sexual mature and minimal mutilations e.g., not castrated.

This will no doubt encourage a rise in the market, especially that of cull animals, where phenomenal prices are already being witnessed and is rising week on week.

Kirsten Williams; 07798617293

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