Agribusiness News September 2024 – Sheep

Store lamb phenomenon

The store lamb sales have gone off with a bang, with averages showing a rise on the year across the country.  This shows the confidence the finishers have in the price of the finished product for the winter and spring.  Looking at trends, we know both the national and European flocks have declined in volume, the past years, resulting in fewer lambs being available for domestic and export from the UK.

The Australian flock has strengthened in volume, and has been an attractive choice for importers, due to its low price.  However, this price has increased (peaking end July), an example of this, is the week ending 17^th August 2024 the price was €4.89/kg DW, compared to the same week in 2023 at €2.74/kg DW (note price shown in Euro).  The reasoning for this rise throughout the year, is due to demand in the middle East in the early lamb marketing season, making supplies now tighter as Australia reaches the end of old season lamb marketing.  The UK and European early lamb was slow to come forward due to early lambs being hit with poor Spring weather and disease issues such as Schmallenberg, which again made Australian lamb attractive for importers.  The Australian lamb marketing for new season lamb will begin again in September.  The outlook is for prices to be stronger than last year, with tight supplies in the early part of this marketing season for both Australia and New Zealand.

The UK lamb marketing season has been slow to start, but recent weeks have seen a rise in volume of prime lamb being marketed.  With current short supplies the price is set to remain at a premium to previous years over the coming months.

In the UK bank interest rates dropped by 0.25% on the 1^st August, which made the Sterling weak and less attractive to investors, reducing its demand.  Which in turn has made our lamb cheaper to import and more attractive to European buyers.

Vaccine shortage continues

As tup sales progress across the country, many are turning their thoughts to the 2025 lamb crop.  There are issues with availability of the Enzootic Abortion (EAE) vaccine, which may have an impact on the next lamb crop, depending on flock circumstances.

If you are buying in new female breeding stock, consider your flock status, and the status of stock being bought in.  There is an inactivated vaccine available and can be used in flocks at risk, producers should contact their vet to discuss the most appropriate actions for their flocks ahead of the next breeding season.

Food security crisis preparedness

The European Union has recently published a report from the European Food Security Crisis preparedness and response Mechanism (EFSCM).  Which shows the recommendations on methods to reduce risks and vulnerability in the food supply chain following events such as world conflicts and disease outbreaks e.g. COVID-19.  This focusses on the EU, which is off course a major trading partner for the UK.  This recognises the requirement of financial support to primary food producers to allow for stability of food supply and the continuation of the supply chain.  It outlines 6 different risk types including –

• Biophysical and environmental
• Economic and market
• Socio-cultural and demographic
• (Geo)political and institutional
• Supply chain performance
• Information and technology

The main recommendations include that the EU must build trust, adopt more collaboration and monitor their food supply, with other countries.  There is an interesting monitoring dashboard available at: European Commission | Agri-food data portal | Monitoring food supply and security (europa.eu)

 

Kirsten Williams; 07798617293