A brand new evaluation report launched by Hybu Cig Cymru – Meat Promotion Wales (HCC) has highlighted present elements impacting on the sheep trade, particularly rising imports, the cost-of-living disaster, the after-effects of a dry summer season and excessive enter prices.
These, in line with HCC’s Between the Strains report, have been mirrored in unstable farmgate costs in Wales throughout the first few weeks of 2023.
For the week ending January 28, 2023, the prime lamb common worth at public sale markets in Wales stood at 227.8p/kg. It is a decline of 5p on the earlier week; nonetheless, the worth stays some 9p above the longer-term common, HCC mentioned.
Glesni Phillips, HCC’s intelligence, evaluation and enterprise perception govt, mentioned: “We’ve got seen a rise in imports from New Zealand and this has come at a time when Welsh Lamb provide is itself larger than ordinary due to delayed ending instances brought on by larger feed costs and the summer season drought stunting pasture development.
“We’ve got recorded 1.2 million head throughput at UK abattoirs throughout December 2022; that’s 5% larger than December 2021 and seven% larger than November final yr.
“We can anticipate to see this larger provide proceed into 2023 as a result of there’s a bigger carry over of previous season lambs on the bottom than we might often expertise at the moment.
“Though demand over Christmas was good, the January blues and continued cost-of-living disaster shouldn’t be serving to client demand for all types of premium proteins into the New Yr.
“There’s proof that buyers want to commerce down at retail and in the reduction of on consuming out so sluggish demand shouldn’t be sudden.”