Sheep market starts 2018 on a firm footing

Sheep market starts 2018 on a firm footing

Farmgate prime hogg prices stabilised in the first full week of trading in 2018, standing 6% higher than last year, or 2% higher in Euro terms, according to Quality Meat Scotland (QMS).

Prime sheep prices have also firmed across the continent, with French producers receiving about 3% more compared to a year ago and Spanish heavy lamb producers receiving about 18% more, although their prices have reportedly cooled over the post-Christmas trading period; Irish prices were nearly 5% higher, said QMS.

Stuart Ashworth, head of economics services with QMS.

Looking at Spanish light lamb (under 12.5kg dwt), prices were down 15% lower than a year, having fallen after the Christmas demand was met, Stuart Ashworth, QMS head of economics services explained.

“While the Spanish heavy lamb price has been particularly firm, prices for Spanish light lamb (under 12.5kg dwt) which are generally the highest in Europe are particularly depressed,” Ashworth said.

However, other markets where light lamb production is important, such as Italy and Portugal, have seen light lamb prices marginally ahead of last year.

Lamb is a traditional New Year dish in southern Europe, with a small roasted carcase being the main course at large celebration meals.

With regards to French prices, one factor which has them has been lower production in the final quarter of 2017, according to Ashworth.

As a result, producer prices increased from a position where they were 0.5% lower year-on-year in September, to 2% higher during November and 3% higher at present.

He added: “This reduced supply encouraged France to import more sheep meat than a year ago during November. This growth came from trade with Ireland and New Zealand as the UK failed to match deliveries of a year ago.

“Though, supported by a competitive exchange rate, the UK did see significant growth in exports to other EU countries, particularly Germany and Belgium. This was sufficient to achieve an overall gain in export activity in late 2017.”

Irish lamb slaughterings so far this lamb crop year have been higher than last year, as in the second half of 2017, Ireland slaughtered 8% more lambs than in 2016.

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