During May and June, the share of beef and lamb retail price received by producers continued to rise both compared with previous months and a year earlier, according to analysis by AHDB.
During May the share received by lamb producers rose by almost eight percent to 59 per cent. This was the first month in 2017 that the producer price has been higher than in the same month a year earlier. A further price increase came during June and the producer share increased to 60 per cent of the retail price. This takes the producer share to the highest level since June 2014. The average retail price fell between April and May by one per cent before increasing, although by less than one per cent during June. In contrast, the average farm-gate price grew by almost 18 per cent between April and June.
The beef producer share of the retail price has continued to grow during May and June as well. The producer share is now above the levels recorded at the start of 2017. It now stands at 52 per cent of the average retail price, which is a rise of one percent on May and nearly two percent on April. The producer share during June was five percentage points higher than June 2016. The average farm-gate price recorded a rise of 13 per cent compared to a rise of one per cent in the average retail price.
The latest Kantar Worldpanel figures to mid-June suggest that the volumes of lamb purchased by households continues to decline. However, supplies of both domestic and imported lamb have been tight, which has been supporting farm-gate prices. Forecasts suggest that there will be a seasonal increase in lamb production later in the year, which could pressure farm-gate prices.
Retail demand for beef is looking more promising, with forecasts for the rest of the year suggesting a drop in production on last year.
Market round-up
Harrison & Hetherington Ltd sold 84 store heifers in St Boswells on Thursday to a top of £1435 per head and 255.6p per kg to average £959.23 and 232.5p (-1.3p on the fortnight), while 44 store bullocks peaked at £1490 and 291.9p to level at £1014.77 and 237.6p (-4.7p).
C&D Auction Marts Ltd sold 2582 prime lambs in Longtown on Thursday to a top of £117 and 232p to average 204p (-14.5p on the week).
The largest show for many months of 5710 cast sheep saw heavy ewes sell to £158 for a Texel and average £81.37 (-£3.14), while light ewes peaked at £77 for Kendal Roughs and levelled at £45.46 (-£12.10). Rams sold to £140 for a Texel and averaged £91.29.
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