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Sustained price pressure on lambs has seen returns to farmers plummet over the past month, dropping 160p to 170p/kg from mid-June when processing demand peaked in the run up to the Eid-Al-Adha festival.
Base quotes started this week on 570p/kg and where farmers have managed to secure higher prices, these deals are capped at 580p to 590p/kg, putting the value of a 21kg carcase at £121 to £124.
Back in mid-June, factory prices for R3 lambs averaged 745.7p/kg, meaning £32 has been wiped off the value of fat lambs over the period.
Mart sales held over the weekend and on Monday saw prices easing on the back of lower factory base quotes.
Prices ranged from £115 to £130, depending on weight and quality, with meal finished lambs receiving most buying interest. However, supplies are expected to temporarily tighten over the remainder of July as farmers focus on weaning and parasite control – it should help put a floor under the trade in the weeks ahead.
Beef
Cattle prices remain unchanged this week with quotes holding on 462p/kg for U-3 animals, although deals continue at 480p to 484p/kg.
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