Both UK lamb exports and imports decline during August

Friday, 23 October 2020

By Bronwyn Magee

The latest HMRC data shows that total UK sheep meat trade declined on the previous year for the month of August, with COVID-19 continuing to impact trade.

Exports

During August, UK exports of sheep meat (including offal) fell by 7% year-on-year to 7,900 tonnes, according to the latest data from HMRC. Exports to France fell notably on the year, down 19% to 3,200 tonnes during the month. Despite this, exports to Italy (+53%) and Ireland (+29%) both recorded increases of 200 tonnes on the year.

In the year-to-August exports were down 8% when compared to the same period in 2019, totalling 57,700 tonnes. This decline primarily reflects low exports during the spring period due to trade disruptions caused by the COVID-19 outbreak. While export volumes have recovered in recent months, the latest data suggests UK export markets may be coming under pressure again. The outlook remains challenging, with demand on the continent still disrupted by COVID-19 restrictions.

Imports

UK imports of sheep meat totalled 3,900 tonnes during August, down 3% on the year. While overall imports have declined, imports from New Zealand increased on the year by 7% (140 tonnes), to total 2,300 tonnes in August. Shipments from Australia also notably increased, up by 260 tonnes on the year. This follows an uplift in product arriving from Australia seen earlier in the year.  

In the year-to-August total imports were down 12% (6,500 tonnes) to 47,200 tonnes. As outlined in July’s data, much of this decline can be attributed to by fall in imports from Ireland and New Zealand. While New Zealand imports have since uplifted, shipments from Ireland have continued to decline, down 3,900 tonnes in the year-to-date.

According to New Zealand export data, there may have been an increase on-the-year in the volume of sheep meat exported to the UK during September. The gap between British and New Zealand farmgate prices has remained wide in recent months, which may explain an increase of New Zealand products entering the UK market. Should prices continue at this level, we could see further imports from both New Zealand and Australia. This will be an interesting watch point in coming months.


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