Keeping up to date with all of the latest lamb market information is crucial. Here we have all the latest analysis and insight from our industry experts to help guide you through market movements and provide a clear, impartial view on what it all means.
Import volumes had been suppressed for several years and 2020 was no different. However, the farmgate price difference between British and New Zealand lamb has widened to the widest level for this time of year since 2016. This could mean that more New Zealand product is attracted onto the UK market.
In the week ending 16 September the GB liveweight NSL SQQ dropped 3p, to 208.78p/kg. Prices continue to trend at a high level for the time of year, being 44p above year earlier levels and up 43p on the five-year average.
During August UK sheep meat production totalled 27,300 tonnes, down 6% (1,600 tonnes) year-on-year, according to Defra data. Much of the decline can be attributed to Eid-al-Adha falling in July this year rather than August as it did last year.
This article focuses on the main factors that will influence the red meat sector in the coming years, particularly in light of the two major events of 2020, the coronavirus outbreak, and the upcoming deadline for Brexit.
Earlier this week the UK government announced the new Most Favoured Nation (MFN) tariff regime which will apply to all imports from countries who do not have a trade deal with the UK. For beef and lamb, the tariffs broadly mirror the level of the EU’s current Common External Tariffs.
In December AHDB released its forecasts for cattle and sheep production. Since then the market has changed dramatically with much of Europe now in ‘lockdown’ due to coronavirus. Sheep prices have come under pressure with a lack of demand both domestically and in Europe, and the cattle industry is struggling with carcase balance.
For the past two years, UK imports of lamb from New Zealand have tracked below historic normal levels while at the same time the global supply and demand balance has tightened, and global prices have continued to trend significantly above the five year average as we enter 2019.