As with the dairy industry, the lamb and beef sectors are faced with unprecedented times following the overnight closure of the foodservice sector both in the UK and on the continent.
Most recent average prices for liveweight prime cattle in Wales and England stood at 186.4 pence per kilogram whilst both deadweight steer and cull cow prices were down by around 20 pence per kilogram year on year.
AHDB reports state that for the week ending 19 April, the retail demand for beef mince had increased by around 40% in volume, contributing £5m in additional sales compared with 2019. Whilst the demand for steaks increased by 28%, roasting joints were still down by 49% in volume, an average of 30% over the two week Easter period year on year. Given that higher value cuts such as roasting joints and steaks represent around 10% of carcase weight, but 30% of carcase value, the increased proportion of carcases being minced represents a significant fall in carcase value, estimated to be around £200; something which is exacerbated by the loss of markets for skins, many of which went to Italy.
Many processors have chosen to bulk store steaks and joints as a result of such pressures however some have reported that stores are now around 85% full and there is the potential that slowing down throughput now will exacerbate the problem in the longer term.
Lamb joints normally prosper during the Easter period but have been significantly affected by the pandemic with leg and shoulder volumes down by 25% and 36% year on year respectively. Given that slaughterhouse throughputs would normally start to rise in Spring, major problems are anticipated in terms of oversupply if industry support is not introduced.
The FUW has therefore urged the Welsh Government to bring forward a meeting of the newly created Agricultural Resilience Group - Lamb Sector Focus Sub Group in order to plan mitigation measures early rather than dealing with problems as they arise.
Following strong industry lobbying, on 22 April, the EU Commision announced plans to introduce Private Storage Aid for beef and lamb worth a total of forty-five million Euros in order to store excess produce for between two and five months and stabilise markets in the longer term. The degree to which this measure should provide security for the upcoming flush of finished lambs is uncertain. Given that sheep and lamb slaughterings would normally increase by between 50% and 80% between the early spring and late summer/early autumn, major concerns remain in terms of how prices and throughputs will be affected - not least given the large proportion of lamb that would traditionally have been sold through the service sector both in the UK and on the continent.