Lamb exports slump as domestic sales take a dive
The sudden collapse in demand for sheepmeat – which this week saw several auction markets close their doors to consignors while others turned stock away and which brought a near £40 a head drop in price for those which did go through the ring – has been attributed to lamb’s positioning in the market.
With a heavy reliance on the pub and restaurant trade and on the export market, the lockdown both at home and abroad in response to the coronavirus pandemic was identified as the main source of the turndown from recent strong trade, with the cancellation of orders pulling buyers out of the market.
But responding to rumours that France – the major export market for UK lamb – was closing its border to UK exports, AHDB expert, Rebecca Wright said this was not the case.
“The border between us and France remains open to commercial traffic although there are some extra checks in place, “said Wright, who added that food products were on the list for priority entry through EU borders and lorry drivers had been temporarily allowed to work on Sundays in France to help commercial traffic flow.
However, she said that the additional restrictions announced in France to further limit the population’s movements had seen all open-air city markets closed – with devastating effects on demand for regional and national wholesalers.
“Lamb demand in France has been described as currently very low,” she said. “In a similar situation as we have seen here in the UK, shoppers panic bought and stocked up. Many consumers are now eating through those stocks.”
She added that throughout Europe lamb demand at Easter was expected to be low, with a consequent over-supply of leg cuts , a staple product for many over the period.
On the domestic market, Wright said that lamb typically sold well at pubs and restaurants – and with those now closed, there waslikelytobedownwards pressure on UK lamb consumption:
“Although, some out of home eating is expected to move to within home, different meals and smaller portions are typically eaten at home compared to
when eating out,” she said. Commenting on the situation, the National Sheep Association’s chief executive, Phil Stocker, warned that the shutdown in trade was having a really damaging impact on the sheep trade: “The trade collapsed at the start of this week with prices down by £1 per kg liveweight – on a 45kg lamb that’s between £40 and £50 a head less, on a value that was maybe just over the £100 mark.”
“We are hearing of export loads now being cancelled – and here at home, the supply chains that serve the catering trade and the domestic supermarket trade are quite different,” he said.
And while most sheep producers were currently focused on lambing, he said that the current loss of EU markets could be viewed as a stark warning of the impact of sudden disruption to export markets which could be repeated when the Brexit transition period ended.