THE decline in the value of the pound against the euro since the referendum outcome was announced has made exports from the UK more competitive on the European market - and has been a contributory factor in the dramatic rise in prices for prime lambs this week.
The UK sheep meat market is heavily dependent on the exchange rate between the pound and the euro as approximately a third of our production is exported, with the majority going to countries within the Eurozone.
Currency shifts also affect imports to the UK, for example, increasing the price of Irish beef in sterling terms. As the pound has also weakened against the New Zealand dollar, sheep meat imports from there will also be less competitive.
Post-EU referendum opportunities for meat exports have been brought into focus by the Agriculture & Horticulture Development Board (AHDB) annual Meat Export Conference in Warwickshire on Wednesday.
AHDB head of livestock exports Jean-Pierre Garnier acknowledged challenges presented by tariff and non-tariff barriers, but pointed to a positive future for exports in both EU and non-EU markets.
While Mr Garnier anticipated three years of rough seas and uncertainty in the UK meat trade he reckoned the impact of Brexit on trade could be partly offset by rising demand for meat in Asia. He pointed out that a golden era of diplomatic relations between the UK and China coupled with rising meat demand in India, Indonesia, South Korea and Malaysia, means there are a host of new and emerging markets for the UK.
Market round-up
United Auctions sold163 store heifers at Stirling on Wednesday to a top of 257.2p per kg and an average of 208.3p (+1.2p on the week), while 149 store, beef-bred bullocks peaked at 245.1p and levelled at 219.8p (+10p). Eight store, B&W bullocks averaged 146.6p, while 53 store bulls peaked at 227.4p and levelled at 160.9p.
In the rough ring 71 beef cows averaged 128.1p and 10 dairy cows levelled at 97p.
C&D Auction Marts Ltd sold 4 prime heifers in Dumfries on Wednesday to a top of 217.5p and an average of 206.7p, while a prime bullocks fetched 206.5p.
There were 55 OTM cattle presented in the rough ring when beef cows averaged 119.8p and dairy cows levelled at 90.1p.
The firm also sold 606 prime lambs to a top of £111 per head and 221p per kg to average 201.7p (+4.1p).
The 367 cast sheep forward saw heavy ewes sell to £100.50 for Texels and average £84.50, while light ewes peaked at £89.50 for Blackfaces and levelled at £58.94.
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