UK sheep meat trade balance positive in the first quarter

The UK exported 6,600 tonnes of fresh/frozen sheep meat in March, according to data from HMRC. This is nearly 300 tonnes more than in February, and over 400 tonnes more than last March (+7%). It brings the year to date total to 17,000 tonnes, 19% more than at the same point in 2021.

Exports were low in the first months of 2021, as exporters grappled with new trading arrangements and costs following Brexit. Volumes had more or less recovered by April, when high prices for lambs in the UK reduced their competitiveness on the continent, reducing exports again. This year however, UK lambs remain discounted to those in France and Germany, and so it can be expected that exports will benefit. Higher domestic production will not have hurt export volumes either, as exports are strongly correlated to supplies of lambs.

Of the 17,000 tonnes exported so far, 3,200 tonnes have gone to France (+12%), 1,300 tonnes to Germany (+27%) and 750 tonnes to Belgium (+75%). These higher volumes, at a higher average price, mean their value was over £110 million, 31% more than a year ago.

Turning to imports, volumes fell in March to 7,000 tonnes. This is 600 tonnes, or 8% lower than in March 2021. A reduction of 2,000 tonnes from New Zealand, which shipped 4,400 tonnes, was not quite offset by increases from elsewhere. Irish volumes came to 950 tonnes (+500%) and Australian volumes totalled 1,400 tonnes (+146%). It is worth noting the UK/Australia Free Trade Agreement is not yet in force, and so is not responsible for the increase in trade seen so far.

In the year to date, imports of sheep meat were 16,000 tonnes, 12% more than a year ago. Exports have been higher than imports. This is increasingly common as domestic production exceeds demand on what may become a year-round basis, rather than only in the autumn.

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