W1: Weekly Lamb & Mutton Update

New Zealand

New Zealand’s Lamb and Mutton Prices Is in Free Fall Since October/November 2022 (Jan 6)

Sheep farmers are under no pressure to get rid of their stock due to the rainfall season amid a sharp and unexpected decline in lamb and mutton prices. The decline started around October/November 22 when the new grazing season was in full swing, and slaughter numbers began to rise sharply. Local prices for Prime Lamb dropped from about USD 5.99/kg to USD 4.93/kg supported by a slowing global economy and a poor worldwide lamb market (18kg). The fact that this pricing is more than USD 0.62/kg less than it was during the same time last year makes it more pertinent. Export pricing then followed this pattern. The prices decreased by about 15% in Europe, 32% in the UK and 34% in China compared to the same period in 2021 for a variety of causes, including inflation, more volumes at lower prices from Australia, and others. Similar to lamb, mutton saw a decline of up to 36% in most markets. This trend is forecasted to continue until March/April 2023.

United Kingdom

Lamb Market Monthly Update in UK, November 2022 (Jan 5)

Great Britain new season lamb prices showed recovery in November, following seasonal declines seen over the previous three months. Both live weight and dead weight prices tracked below the equivalent weeks in 2021, but remained considerably above their respective five-year averages. Margins for livestock farmers continue to be pressured as prices for key inputs remain at high levels. While the rate of input price inflation has eased slightly since August for fuel and feed according to the latest Agricultural Price Index data, there have been further increases in prices paid for fertilizers. UK sheep meat production totaled 24.4K MT in November according to Defra figures, up marginally versus October but back 4% compared to November 2021. This was driven by trends in throughputs, although carcass weights were back on the month and year. 

Ireland

Lamb Prices Start 2023 at 70C/KG Behind This Time Last Year (Jan 4)

The new year has seen no change in lamb prices, with factories holding quotes that were seen just before the start of 2023. Base prices at the start of this week remain around USD 6.73- 6.83/kg (€6.30-6.40), with lamb prices topping USD 6.83- 7.05/kg (€6.40-6.60) in general. This is a substantial difference to what was seen this time last year, the beginning of 2022, when base quotes were standing at USD 7.37- 7.58/kg (€6.90-7.10).

No Reason for Lamb Prices to Be USD 1.07/KG Less Than This Time Last Year (Jan 5)

There is no legitimate reason why lamb prices are currently USD 1.07/kg (€1) behind this time 12 months ago. This is what the sheep chair of the Irish Cattle and Sheep Farmers’ Association (ICSA), Sean McNamara has said. McNamara said he is furious, as is every sheep farmer, regarding the current level of lamb prices, especially at a time when input costs are so high. The ICSA sheep chair added that beef prices are ahead of where they were this time last year and said it’s not much to ask for the same for lamb prices, saying “all we [sheep farmers] are looking for is a bit of fair play”.

Spain

The Board Maintains All Lines of Support for Farmers With Farms Affected by Sheep and Goat Pox (Jan 3)

The Ministry has launched aid and a promotional campaign for the consumption of Andalusian lamb. There is now complete freedom to sell cattle in the areas where cases were detected. The Ministry of Agriculture, Fisheries, Water and Rural Development maintains all the lines of aid launched to support farmers with farms that have been affected by Sheep and Goat Pox (VOC), as well as a campaign to promote the consumption of Andalusian lamb for the Christmas period. As a result of constant dialogue with farmers, the general director of Agricultural and Livestock Production, Manuel Gómez, recently held a new meeting in Baza with farmers from the area, accompanied by the delegate of Agriculture, Fisheries, Water and Rural Development of the Granada province, Celia Santiago. 

United States

US Lamb Exports Increased 72% From January Through November 2022 (Jan 6)

November exports of US lamb muscle cuts more than doubled the year-ago volume, reaching 247MT (up 129%), while export value increased 72% to USD 1.38M. For January through November, exports increased 72% to 2.125K MT, valued at USD 12.5M (up 61%). While 2022 growth was primarily driven by strong demand in the Caribbean, November exports were bolstered by larger shipments to Mexico and Canada. 

Turkey

The Average Lean Cut Price of Veal Blade and Blade Lean Cut Increased (Jan 7)

According to the weekly (January 5th) Lean Veal and Lean Lamb Prices announced by the National Red Meat Council, the average lean cut price of veal blade increased to USD 6.73 (126.87 lira), and the price of lamb blade lean cut increased to USD 6.48 (121.69 lira). Three weeks ago, these prices were at the level of USD 5.72 (107.5 liras) for lean cuts of veal blades and USD 5.55 (104.2 liras) for lamb blades for lean cuts.

Brazil

Genetic Evolution in Sheep Farming Will Be On Display at the 15th Agrovino (Jan 6)

The 15th edition of Agrovino will feature 298 animals in the shed and 57 trios, totaling 469 animals, a record in relation to previous editions and a 35% increase in relation to last year, with 347 specimens. On the track in the park of the Association and Rural Union of Bagé (RS), the specimens will parade during the judgments of the breeds, exposing the best of the genetics of the breeders. In addition, business will also be part of the fair with sales in four auctions throughout the event organized by the Bageense Association of Sheep Breeders (Abaco) and the Rural Association and Union. According to estimates by the Brazilian Association of Sheep Breeders (Arco), the national herd already exceeds 20M heads.