EU sheep prices remain firm

Despite recording some seasonal pressure recently, GB finished lamb prices remain at historically high levels. Throughput for the year-to-date is slightly up on last year, indicating that there is no shortage in supply, with production forecast to remain higher for the rest of the year.

European lamb prices have generally been on an upwards trend since the beginning of the year, supported by lower production in the first quarter.  In Spain, prices have been on a steady incline over the past few months. However, they remain notably behind their Nov-21 peak, standing at €6.76/kg (572.9p/kg) in the week ending 18 July. French prices have shown consistent strength, peaking in July at €8.12/kg (700.5p/kg). Irish prices started off the year slightly ahead of 2021, however dipped below year-ago levels between March and April. The Irish price peaked at €8.00/kg in mid-June (683p/kg), but has since come under pressure, posting a similar trend to the GB price.

With a seasonal increase in production in the second half of the year, the UK moves to a net-exporter position. Therefore, the price competitiveness of UK lamb on the continent (particularly against French prices, our main export market) becomes increasingly important. GB prices had been at a discount to the French equivalent until June, when they briefly edged higher. Indeed, UK sheep meat export volumes to France suffered in May, coinciding with the rally in GB prices. Since then, the difference has begun to widen again, with lower production potentially offering support to French returns.

Read our summary of the EU Commission’s latest forecasts for a forward look at the EU sheep market.

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