A new analysis report launched by Hybu Cig Cymru – Meat Promotion Wales (HCC) has highlighted current factors impacting on the sheep industry, namely increasing imports, the cost-of-living crisis, the after-effects of a dry summer and high input costs.
These, according to HCC’s Between the Lines report, have been reflected in volatile farmgate prices in Wales during the first few weeks of 2023.
For the week ending January 28, 2023, the prime lamb average price at auction markets in Wales stood at 227.8p/kg. This is a decline of 5p on the previous week; however, the price remains some 9p above the longer-term average, HCC said.
Glesni Phillips, HCC’s intelligence, analysis and business insight executive, said: “We have seen an increase in imports from New Zealand and this has come at a time when Welsh Lamb supply is itself higher than usual because of delayed finishing times caused by higher feed prices and the summer drought stunting pasture growth.
“We have recorded 1.2 million head throughput at UK abattoirs during December 2022; that’s 5% higher than December 2021 and 7% higher than November last year.
“We can expect to see this higher supply continue into 2023 because there is a larger carry over of old season lambs on the ground than we would usually experience at this time.
“Although demand over Christmas was good, the January blues and continued cost-of-living crisis is not helping consumer demand for all kinds of premium proteins into the New Year.
“There is evidence that consumers are looking to trade down at retail and cut back on eating out so sluggish demand is not unexpected.”
