High producer share of retail lamb prices
The producer share of the retail price for lamb has remained over 50% during the past few months, according to AHDB Beef & Lamb.
The levy board says this is unusual, as declines to the measure are usually observed in late summer and early autumn as farmgate lamb prices decline. Consequentially, producers have been seeing an above average share of the retail price during the July-September period.
Though the figure for September declined by two percentage points on the previous month to 50%, this remained six percentage points higher than the same period in 2015. Equally, this figure was two percentage points above the five-year average. These producer-favourable circumstances have arisen in recent months due to strong farmgate lamb prices, supported by the weak pound following the Brexit vote and tightening supplies. Since retail prices have not been increasing to reflect this, a greater proportion of this price is now going to the producer.
During September, overall retail prices have actually decreased by 1% on the previous month. This change was driven by a 2% decline in the price of fillet end leg and minced lamb, while cutlet chops also declined in value by 1%.
Most other cuts remained stable overall, except for the cheaper bone-in shoulder cuts which showed price appreciation over the month of 2%.
In comparison to September 2015, overall retail prices are 1% higher. This is attributable to the price of boneless shoulder (up 6%), loin chops (up 5%), whole leg (up 3%) and bone-in shoulder and fillet end leg (up 1%). Cutlet chops showed price declines (down 2%), as did diced lamb and lamb steaks (down 1%), while diced and minced lamb prices remained stable.
Lamb prices fall
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