AHDB Cattle and Sheep Weekly
08 October 2014
Lamb trade strengthens in run up to Muslim festival
As anticipated, with the Muslim festival of Eid-al-Adha falling at the end of the week, there has been some considerable strengthening in the liveweight lamb trade since Monday 29 September.
With much improved demand for lambs ahead of the festival, the trade tipped in the producers’ favour after the usual pressure over the summer. As such, prices were as much as 11p/kg higher on the week, even with considerably higher numbers being marketed. At 156.8p/kg, the GB NSL SQQ for week ended 1 October was up nearly 8p/kg week on week.
Although prices began to turn last Thursday and Friday, the strongest trade day of the week was Monday 29 September, with the daily SQQ up 11p on the week, to 159.2p/kg. As the week progressed further, prices began to ease somewhat, however, although at 156.2p/kg on Wednesday 1 October, prices were still up 7p on the week.
These positive price increases were in spite of GB auction market throughputs for the week being up over a quarter, totalling over 153,000 lambs penned nationally.
Although increased demand for the festival improved the liveweight lamb trade, the cull trade didn’t experience the same uplift. As throughputs during the week increased 6%, the cull ewe price averaged £50.06 per head for week ended 1 October, down 62p on the week. With much of the uplift occurring from Monday onwards the deadweight SQQ for week ended 27 September was down 3p/kg on the week at 353.9p/kg. With the much sharper liveweight trade, the deadweight price for week ended 4 October should be stronger when it is published.
Growth in English flock evenly spread With the English breeding flock increasing as whole over recent years, the latest release of county level statistics from DEFRA give some insight into where this growth has come from. With overall ewe numbers in England reportedly increasing by 10% between 2010 and 2013, it is positive to note that most regions showed increases of between 8 and 12%. The exception to this was the Eastern region where there was only a 1% increase in ewe numbers.
However, with only 142,000 ewes, the Eastern region accounts for only 2% of the national flock. The South West region continued to have the largest >breeding flock with 1.54 million head, or 22% of the total England ewe population, with numbers increasing by 12% between 2010 and 2013. The next two largest flocks are in the North West (and Merseyside) and the West Midlands with 1.37 million and 1.06 million ewes respectively, this represents growth 9% and 11% since 2010. Of the other regions, there was a 12% rise in ewe numbers in the East Midlands, 10% rises in the South East and Yorkshire and the Humber, with the North East showing an 8% rise.
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