Lamb prices “notably higher” on the year as religious festivals approach
Hybu Cig Cymru – Meat Promotion Wales (HCC) has reported that deadweight lamb prices have increased by more than 20% in the previous nine weeks, attributing the growth to increased consumer demand around religious festivals and a tightening of supply to market.
HCC said that since the first week of 2024, nine consecutive weekly price rises have carried the current deadweight Standard Quality Quotation (SQQ) average for lambs across GB to almost £7.90/kg, an increase of £1.74. The latest figures reportedly “exceeded the highest price recorded last year” of around £7.43/kg in May and is “notably higher” than historical averages by some 50%.
Glesni Phillips, HCC’s intelligence, analysis and business insight executive, said that a tightening of supply and seasonal religious festivals where lamb is traditionally eaten, have contributed to the escalating prices. She said: “Peak consumption of lamb is usually seen during religious festivals, and this year both Easter and Ramadan – the Islamic festival which drives demand for proteins such as chicken and lamb – occur in March.
“These events, coupled with both the UK and Welsh sheep breeding flocks being in decline, mean the supply of lambs coming on to the market at the moment is tight when compared to year-earlier levels and current demand levels.”
Phillips said throughput data from Defra for the May 2023 – February 2024 period indicated that a total of 10.2 million lambs have been processed in the UK so far this year, which is similar to year-earlier levels, despite the June survey revealing the lamb crop was some 6% smaller than year-earlier levels. She said: “This does indicate that there are a limited number of lambs remaining on the ground.”
HCC said that trade patterns have also provided some encouragement to the domestic market, with HCC estimates of HMRC data revealing that sheep meat exports from Wales were “strong” in 2023 – up 10% in value terms to total £190.9 million.
Phillips said: “This suggests that, despite minimal economic growth across World markets due to inflation levels, there continues to be demand for lamb in our export countries.
“Looking further ahead, there are more key festival dates in 2024; the festival of Qurbani – ‘the festival of the feast’ – for instance, is set to occur during mid-June and the Welsh Sustainable Farming Scheme proposals could also put further pressure on numbers.”
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