²ÝÁñÉçÇø

Sheep prices remain above 2023 levels

Lamb prices are 93p/kg above last year's figures

clock • 2 min read
Sheep prices remain above 2023 levels

Lamb prices have been above last year's levels for all of 2024 so far, with the latest average deadweight price at 667p/kg, according to the AHDB, which is 16.2% or 93p/kg above last year. At the peak of the market this year, prices were just short of 900p/kg, more than 150p/kg more than last year.

Reduced production has been a key factor. In the first seven months of the year the number of UK sheep and lambs slaughtered was down 9.1% to 7.108 million head, according to Defra, with a 3.3% drop in July numbers. Lamb and mutton production in the seven months was 8.4% lower. 

Sheep meat

Stronger sheep meat consumption is providing support, with retail sales up 4.0% up volume in the 12 months to July 7, according to Kantar figures, while the value of purchases was 6% higher. Religious festivals have also boosted demand, with key dates coinciding earlier this year.

READ NOW: The ²ÝÁñÉçÇø Guardian podcast: Taking the heat out of California wildfires using sheep and goats

Greater sales at home and reduced production have reduced exports, with 40,100t of sheep meat and offal shipped during the first half of 2024, a drop of 7.5% on last year. Imports have also increased, standing at 38,400t in the first six months of the year. 

Hannah Clarke, senior red meat analyst at the AHDB, said: "The reduced UK numbers are partly due to the poor weather throughout the spring, but also likely influenced by ongoing profitability and disease challenges."

READ NOW: Controls on sheep and goat products to protect against peste des petits ruminants

She expected an increase in slaughter in the second half of the year, with a 1% increase in clean sheep slaughter to 3.3 million head. That would take total clean sheep production to 11.8m head during 2024, down 400,000 or 3.3% on 2023. Total sheep meat production is forecast to fall by 2.9% to 278,000t. 

Lamb production

These forecasts assume a minimal impact from the sheep diseases Bluetongue and Schmallenberg. That is the case on mainland Europe, where the EU estimates sheep meat output in the first five months of the year was at 162,000t, down 7.4% on the same period last year.

READ NOW: Tributes paid to Charollais Sheep Society chair Charles Sercombe

Production in New Zealand (the largest single supplier to the UK) has been more robust. In the 42 weeks to July 20, lamb output was up 5.6% to 16.225m head, with a 3.8% decline in mutton slaughter to 2.918m head. However, more recently New Zealand lamb numbers have tightened, as the season draws to a close.

BNG NNH2O Carbon | National Sale | Informal

£±Ê°¿´¡

FARM LOANS & RE-MORTGAGES

£±Ê°¿´¡

Pennant Finance

£±Ê°¿´¡

More on Farm Business

Family farm tax bill will wipe-out profits for 10 years, warns CLA

Family farm tax bill will wipe-out profits for 10 years, warns CLA

Growers would have to allocate 159% of its profit each year just to cover the tax bill

clock 11 November 2024 • 2 min read
Ben Taylor - Roythornes Solicitors on the Autumn Budget: "The £1 million threshold seems incredibly low"

Ben Taylor - Roythornes Solicitors on the Autumn Budget: "The £1 million threshold seems incredibly low"

How could the Budget affect tax and estate planning?

clock 11 November 2024 • 7 min read
How to tackle succession successfully

How to tackle succession successfully

The Budget has put succession planning in the spotlight, but how do you start the conversation?

clock 08 November 2024 • 3 min read