Lamb Market

The lamb price has seen a sharp decline as a surge in throughput coincided with the hot weather.  According to figures from the Agriculture and Horticulture Development Board (AHDB) throughput in GB of lambs in the week ending 17^th July were up 20% on the previous week. The liveweight GB SQQ price fell by 14.8p per kg week on week to average 206.8p per kg.  The average SQQ deadweight price fell by 7.4p per kg to 483.9p per kg. 

Figures for week ending 24^th July show throughputs fell by 37% at GB auction marts as farmers reacted to the drop in prices from the previous week.  But demand is reported to be very quiet.  There is generally a drop in consumption of lamb during the summer months and this appears to have been exacerbated by the recent very hot spell, which has seen consumers turn to more conventional BBQ food – burgers and sausages. 

For the week ending 24^th July, prices have continued to fall as processors deal with the backlog of lambs from the previous week.  The average GB SQQ liveweight price averaged 174.3p per kg; a further fall of 32.5p per kg.  Deadweight prices fell week on week to average 474.5p per kg.  The lamb price up until this point had remained unseasonably strong.  It remains to be seen whether prices continue to slide or whether they have just ‘corrected’ themselves over a very short period of time.  Latest evidence leans towards the latter.  Prices towards the end of the week showed some strengthening, and the latest average SQQ liveweight price for 29^th July stood at 182.13p per kg, although volumes were down some 50%.

Furthermore, the price will not be helped by the volumes and price of imported lamb.  Latest information from HMRC is for May.  It shows the volume of imports is 15% higher and the price 17% lower (at £3,800 per tonne) than year earlier levels.  The majority is still coming from New Zealand, with volumes increasing by 14% year-on-year.