Outlook bright for sheepmeat prices despite dip in trade

Irish lamb prices are said to be “among the strongest in the EU. Photo: Damien Eagers

Claire Mc Cormack

April 27 2021 02:00 AM

A ‘favourable’ summer market is in store for the sheep trade which has enjoyed record prices in recent weeks as supplies tightened. With deadweight lamb making 779.25c/kg (to week ending April 17), Irish prices are said to be “among the strongest in the EU”. However, as more of this season’s lambs become available for slaughter and supplies rise, prices are cooling off with quotes for lamb and hoggets already back 40-60c/kg. Seamus McMenamin, Bord Bia sheepmeat and livestock sector manager, told the Farming Independent that key factors contributing to recent record returns are: a significantly smaller carryover of hoggets into 2021, due to strong lamb throughput in summer/autumn 2020; and higher levels of ewe lamb retention for breeding. “Reduced imports from Northern Ireland for direct slaughter is another key factor; plus, spring lamb supplies have not come forward yet in any great numbers,” he said. “There has also been a reduction in lamb availability on the EU market due to lower levels of lamb production and reduced imports from New Zealand. “Reduced lamb exports from the UK, our main competitor in the EU markets, have also been reported.”

Very similar

McMenamin said prices for Irish lambs are “very similar” to those being paid in both Great Britain and Northern Ireland.
However, as more of this season’s lambs become available and supplies improve, he warns that “deadweight price is expected to come back”.
Yet overall, he believes the outlook for the lamb market “remains very favourable”.
“The latest available forecasts from the EU have indicated a further contraction in both sheepmeat production and sheepmeat imports in the trading bloc during 2021, which is expected to support the deadweight trade,” he said.
“Plus, a smaller ewe flock in the UK, and growing focus on their domestic market for sheepmeat, have meant the level of sheepmeat exports from the UK to the EU is forecast to decline further in 2021.
“These factors create further opportunities for Irish lamb on our closest and most valuable market.”
China continues to have a huge influence on the global sheepmeat market too.
“Firm demand for imported lamb has seen large volumes of New Zealand and Australian sheepmeat exports being redirected to the region and away from more traditional markets such as the EU,” McMenamin said.
“This trend is expected to continue into 2021. Production forecasts for New Zealand and Australia have also indicated a decline in the availability of sheepmeat for export during 2021.”