Complex trends in meat market

ANALYSIS of market prices for lamb, beef and pork in Wales by Hybu Cig Cymru – Meat Promotion Wales (HCC), suggests that both local and global factors are having a substantial and complex influence in 2019.

Cattle prices have dipped significantly below recent levels for all categories, including steers, heifers and prime cattle. No single factor seems to be responsible, but rather a range of issues affecting supply and demand. Since the start of the year, UK beef production is up 2% by volume while domestic demand is sluggish, partly due to poor weather at the start of the summer barbecue season combined with subdued consumer confidence as reported by the Bank of England.

Another factor would be the uncertainty brought by current political turbulence. Reports suggest businesses have been looking at contingency plans at various points in the supply chain for potential no-deal Brexit disruption, and this will continue to make 2019 an exceptionally difficult year to predict.

Lamb prices are somewhat lower than last year at around £2 per kilo (liveweight); however such prices are normal when compared to the fiveyear average for July. In contrast to 2018, when poor spring weather led to a reduction in supply, new season lambs have come on to the market in larger numbers earlier this year. Brexit-related uncertainty over exports was balanced by good domestic demand in late-spring.

Pig prices at market continue to rise, despite increased numbers coming to market in the UK, thanks to the influence of reduced production in Asia.