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The sheep sector continues to perform strongly. Factory quotes during September have generally held around 450p/kg, a rise of 90p/kg on the same period last year and the highest on record for the outlined month.
On a 21kg carcase, the price differential equates to almost £19/head year on year. Current prices are running 80p/kg ahead of 2018 and 2017 levels, and are 135p/kg higher than 2015 when quotes slumped to 310p/kg during September.
Demand
High sheep prices in 2020 are due to a combination of factors. Demand from European export markets has strengthened and processing plants on both sides of the Irish border have been capitalising on this.
Meanwhile, supplies on the ground are reportedly tight after higher factory throughput early in the season. An additional 26,000 animals have been processed in NI so far this year, making it the highest kill to date for five years.
In Britain, market analysts AHDB predict that the overall sheep kill will be down 2% in 2020. Coronavirus has also hit UK sheepmeat imports, and to the end of June 2020 they were at historic lows.
The main importing country remains New Zealand (NZ) with around 70% of the total, but it has increasingly diverted more lamb to meet demand in China. NZ imports to the end of June 2020 were nearly half what they were in 2015.
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