UK lamb prices at highest level for five years

The UK lamb trade is in a similar position to the Irish trade, with prices diverting from their seasonal trend and increasing in the last week.

AHDB livestock analyst Hannah Clarke reports that for the week ending 1 July the new-season lamb SQQ liveweight price increased by just over 2p/kg to average 228.7p/kg. This is the equivalent of €2.52/kg at 90.5p to the euro.

As reflected in the price graph below, this is the highest price for the time of year in at least the last five years.

Lamb throughputs are reported as breaking the 100,000 head mark this week, with total new-season lamb throughput increasing by 26,100 head on the previous week to reach 113,400.

This comes after weeks of tight supplies and is running 29,500 head (+35%) higher than the corresponding week in 2019.

Solid demand

With solid demand in export markets, British abattoirs have been extremely anxious to source lambs, with reports indicating returns ranging anywhere from £4.85/kg to as high as £4.95/kg to £5.00/kg were being secured. This is the equivalent of €5.36/kg to €5.50/kg and €5.65/kg to €5.80/kg including VAT at 5.4%.

A strong British trade is positive for farmers in Britain, Northern Ireland and Ireland. It puts a strong floor under exports into the continental EU market.

The AHDB is wary of the prospect of higher numbers coming on stream and putting pressure on prices, but with the festival of Eid al-Adha edging closer, there is more optimism that markets may perform better than in recent years.

Read more

Sheep trade: prices rising as factories struggle to fill lairages

Scottish Prices: lamb lifts in the prime ring with over 9,000 sold in marts