W6: Weekly Lamb & Mutton Update

Global

Global Red Meat Trade Showing Resilience for 2023 (Feb 7)

Mr. Macdonald reported that UK lamb production is predicted to rise this year. He added: “At EU level, the EU Commission has forecasted a slight uplift in production for 2023 but, with consumption projected to rise by 1%, a 4% lift in imports is modeled, and this should help support UK exports.” The New Zealand lamb crop is estimated to have decreased by 2.6%, and export volumes fell by 2.6% in Q4 2022 compared to the same period in 2021. Moving through to this year, New Zealand lamb prices continue to look competitive, with farmgate prices around 20% lower than in early 2022.

New Zealand

Sheep Meat Export Volume Fell 5% But Value Increased 6% In 2022 (Feb 10)

Sheep meat export volumes fell 5% to 375,716MT for the year but values increased 6% to USD 4.3B. The average free on board (FOB) value of sheep meat exports in 2022 was USD 11.56/kg compared to USD 10.37/kg in 2021.

New Zealand’s Sale-Yard Prices of Meat for W5 (Feb 11)

In New Zealand, good grazing conditions caused farmers to keep their stock back, waiting for stronger farmgate prices, causing lower sale yard volumes than usual during W5. The average local slaughter and export price trends for W5 in New Zealand for W5 vs. W4 stood as follows:

• Lamb NI, 18kg - USD 4.32/kg (NZD 6.85/kg) vs. USD 4.35/kg (NZD 6.90/kg) - 0.7% decrease

• Export Lamb Flaps, China - USD 6.04/kg (NZD 9.58/kg) vs. USD 6.02/kg (NZD 9.56/kg) +0%

United Kingdom

Welsh Farm Incomes Are Increasing (Feb 7)

Many sheep and cattle farms in Wales will have seen a ten-year high increase in business incomes in the last full financial year, according to new Welsh Government data. But the situation will have changed markedly in recent months, with significant increases in costs for farmers and the dissipation of the impact of COVID on retail trends illustrating the potential volatility of the agricultural sector. In the year to March 2022, Welsh farm incomes rose to a new overall average of USD 41202.22 (£38,600), up nearly a third on levels reported in the previous twelve months. 

The National Farmers’ Union Livestock Chair Has Concerns for Great Britain’s Sheep Sector (Feb 11)

The livestock board chair at the National Farmers’ Union (NFU), Richard Finlay, has said he is concerned as Great Britain’s sheep sector continues to see falling lamb prices. “In recent days we’ve seen the old season lamb (OSL) deadweight price fall to 495p/kg, and the liveweight price fall to 234p/kg,” he said. Finlay said that huge increases in farm inputs of feed, fuel and fertilizer have seen his sheep rolls go up from USD 298.88/MT (£280) to USD 426.97/MT (£400) in 2023.

Ireland

In Ireland, Hogget Prices Slip a Further 5-10C/KG (Feb 7)

The uncertainty for sheep producers around prices continues to linger going into W6, with factories that remained firm on price in W5 having knocked 5-10c/kg off hogget prices. These latest price cuts are a further blow to producers with hogget ready for marketing, with a slight reprieve in prices two weeks ago of 10-15 c/kg being gradually, and in cases fully, eroded again. In W5, the start of some downward movement in hogget prices was seen, with one factory pulling 10c/kg off its base quote for hogget. Elsewhere however, prices remained solid, but those that held prices last week have now eased back their offerings. Irish Country Meats is on a base price of €5.90/kg plus a 20c/kg QA bonus up to a 23 kg carcass weight.

Chile

Sheep Meat Production Falls in Chile in the Last Quarter of 2022 (Feb 6)

According to the figures revealed on Feb 2 by the National Institute of Statistics (INE), through the Ferias y Mataderos bulletin, the production of meat on sheep registered a total of 586MT during the October-December 2022 quarter, implying a decrease of 11.9% compared to the previous year. Meanwhile, the benefit, of 40,433 heads, decreased by 14% YoY.

United States

2022 Is a Record Year for Us Lamb (Feb 9)

Exports of US lamb muscle cuts finished 2022 sharply higher YoY at 2,225MT, up 59% and the largest since 2019. Export value increased 49% to USD 13.2M, also the highest since 2019. Growth was led by strengthening demand in the Caribbean, where exports increased 47% to 1,043MT, valued at USD 7.5M (up 32%). Exports also increased substantially YoY to Mexico, Canada, the Philippines and Taiwan.

Argentina

Consensus to Strengthen and Update the Approach to Sheep Health in Southern Argentina (Feb 8)

The National Agri-Food Health and Quality Service (Senasa) agreed on common points to strengthen the approach to sheep diseases in the Patagonian region while highlighting the strengths of the work that has been carried out in this regard, during a meeting held on Feb 7 and 8 in the town of Puerto Madryn, province of Chubut, which brought together national and regional authorities of the organization, provinces and municipalities, and producers. As a conclusion to both days, Senasa presented a proposal on the strategies proposed and agreed upon, for updating the current regulations while provinces and producers committed to applying a plan against ecto-parasitosis, which includes contributions from structure, personnel and bathing areas, which will be worked on in the respective provincial commissions of Animal Health (Coprosa).

Turkey

The Number of Sheep Decreased in Turkey (Feb 9)

The number of sheep and goats decreased by 2.2% in 2022 compared to the previous year and was calculated as 56.266M. In this period, the number of sheep decreased by 1.1% to 44.688M, while the number of goats decreased by 6.2% to 11.578M heads.