UK sheep farmers are facing reduced returns after lambs dropped £30/head in a week. Challenges to get lambs exported to the continent and the closure of hotels and restaurants are being blamed for falling prices.

Last week, liveweight sales were typically running at £2.30/kg to £2.50/kg for medium-weight lambs, with most lambs making over £105/head. However, since the UK Government shut all restauarants and hotels to slow the spread of the coronavirus, the price has dropped to £1.80/kg liveweight, which makes a medium-weight lamb worth less than £80/head. This comes after store lambs made more per head in recent weeks.

Further challenges in the lamb market have been caused by restrictions abroad, with foreign buyers reducing orders as much of the continent is in strict lockdown.

Many wholesalers are reluctant to send lorries to the continent as border restrictions could see some drivers stranded if COVID-19 rules tighten.

Looking ahead, Easter and ramadam at the end of April were hoped to boost lamb demand but if gatherings of people are still banned then consumption of high-value roasting joints could be curtailed.

Sales collapse

A Scottish Meat Wholesaler spokesperson said: “While demand is certainly strong for certain cuts, sales into both the foodservices and hospitality sectors have collapsed. Set alongside an almost non-existent export trade, due to Europe being in virtual lockdown at present, this is leaving members with an unprecedented challenge in achieving carcase balance.

“This situation has worsened further this week with the important UK lamb export route into Rungis market in Paris slowing to a near standstill since the French government moved to close the country’s outdoor markets. It is inevitable that livestock prices will be dragged down by these factors, something which is totally out of our control.”