Farmer1001
Member
An excellent post. Ultimately the sheep job is such a rollercoaster there is little we can do about it, but make mistake (edit) not all butchers cant make money out of £150 hoggs, and we need butchers more than ever at a time supermarkets close meat counters and promote plant based high return highly processed alternatives. Lambs will be ok for a bit but its not sustainable without serious exports or a British butcher adding serious value or the pig job getting better. It wont help the lamb job as long as a 50kg pig carcass is making £80 against a 21kg lamb carcass at £110/£115. (edit) after reading @Smith31 post, I have no doubt certain sectors will pay seriously good money for "some" of what we produce, indeed we can make as much if not more from the faggots as we can the whole legs but the market for faggots is much smaller than legs. We need to get like NZ and start marketing and promoting lamb and get away from just selling lambs.Isn't it fantastic that these Hoggets are all now worth so much money and I doubt anyone actually thought they would go to these levels immediately we left the EU completely.
However a little analysis of the situation might be sensible before too much talk of the £200 hogget.
Why have the prices increased so much in a little over a week?
I would suggest that the main driver is shortage which was caused by people hedging their best before a decision was made about tariffs, so numbers had been drawn out to kill pre Christmas when the price is normally good and was to the previous few weeks if one looks at the numbers.
Are these prices sustainable?
At levels around £5.00 deadweight then yes, however with some now heading towards £6.00 it is unlikely unless export demand drives the price on a once again weakening pound against the euro.
Exports are NOT going smoothly and if the issue of Health Certificates and Vets is resolved quickly then we should see a more level trade which will be good for everyone. However this is not fully resolved yet and up to now volumes through the ports have only been a fraction of normal.
Exports are still the driver of price for lamb/hogget.
The butchers I supply have cut their lamb orders by over 50% as they have plenty of cheap Pork and Beef which they can sell more easily at a better profit. Most of the Beef is being minced anyway!!
One thing I have learnt over the many years of selling sheep is that if you are making a good profit then take it. Speculation that they will be dearer next week does not always occur.
I don't see the price crashing in January or February as the numbers are short enough and the weather is against too many sheep finishing quickly but I won't be waiting for the £200 hoggets!