UK farmers receive greater share of retail price
This August, UK farmers received a greater share of the retail price of beef and lamb compared to the same period in the previous two years, a report produced by Hybu Cig Cymru – Meat Promotion Wales (HCC) has revealed.
UK farmers received a 52% share of lamb prices in August 2016.
According to the report, UK farmers received a 52% share of lamb prices and a 50% share of beef retail prices in August 2016, however did experience fluctuations in the farm to retail price spread earlier in the year.
In the lamb sector, the lowest share for UK farmers stood at 49% of the retail price in January, however this steadily increased to 54% by March, aided by improved farmgate prices, which was helped by the fall in the value of Stirling.
The lowest share paid to beef farmers so far in 2016 has been 45% in April. According to HCC, this situation has gradually improved due to a tightening supply and steady demand for the product.
John Richards, HCC’s industry information executive, said: “The main reason for any fluctuation in the farm-retail price spread is changes to the prices farmers receive for their finished animals in a highly competitive marketplace.
“In August 2016, the farmer’s share for lamb was 10% more than in the same period in 2015, and this reflects the market at the time,” Richards continued. “A number of factors, including an unpredictable exchange rate and varying supply will influence the development of the situation in the months to come.”
The report was published in HCC’s October edition of its Market Bulletin, a summary of sheep, cattle and pig trading patterns and prices.
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