![]() Results from the Welsh Red Meat Benchmarking Study carried out by Andersons shows a huge variation in performance in sheep farming businesses.Īs well as output, the three most influential factors contributing to the differences in financial performance are: However, even with a positive Brexit outcome, with a free trade deal with the EU, we would expect both production and consumption to continue to trend downwards.īeing able to adapt and change the way farming practices have traditionally been carried out is now, more than ever, crucial for success. In addition, the sector must look to deliver a high-quality, consistent, premium product to the UK retail sector which is, at least for now, looking for a home-produced product. Export tradeīrexit permitting, there remains a great opportunity to continue to build on the successful export trade which has built up over many years. Strong demand from China which has a shortage of meat as a result of swine fever severely reducing its pig herd has also diverted New Zealand sheep meat exports from both UK and EU markets with this looking set to continue into 2021. Recent sheep meat prices have been underpinned by reduced levels of imports from New Zealand, both to the UK and the EU, with supplies tight following drought. Lamb is a relatively expensive and premium meat choice for most consumers, often eaten out of the home. The immediate impact of Covid-19 in terms of the closure of restaurants, and perhaps longer in terms of personal finances, suggests consumption levels are likely to continue to decline. ![]() Sheepmeat production in the 2020 calendar year is forecast to decline by 7% with the lamb kill down 4% and the ewe kill down 9%. To be among the best performers, farmers will need to find ways to squeeze overhead costs, deliver what the market requires and have a deep understanding of their business.Domestic prices being supported by China’s heightened demand for imported meat as it rebuilds its pig herd.Sheep numbers and lamb consumption both forecast to continue their long-term decline, with an economic downturn likely to squeeze demand for the premium meat.
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