Sheep prices should remain buoyant for the foreseeable future going by the Agricultural and Horticultural Development Board’s latest European Market Survey which states the EU net production for sheep and goat meat was down 6% in 2008 with provisional figures for 2009 showing a further 6% decline.

Furthermore, sheep and goat meat production in the EU is forecast to fall by a further 2% from 2009 to 2010, with indigenous slaughterings expected to continue to decline in the UK and Spain by 3% and 4%, respectively.

Not surprisingly, as supply within the EU has contracted the price of heavy and light lambs has risen, helped by steady EU demand for lamb declining by a lesser extent than supply. EU heavy lamb prices rose by 7% in 2009 while light lambs increased by 4% and a further 5% in 2009.

However, while prices have risen, overall consumption within the EU has decreased falling by 5% between 2008 and 2009.

Tighter supplies are continuing to drive prices upwards on the home market too with the old season deadweight SQQ price increasing by 2% to 443p per kg for the week ending April 17, while although new season lamb throughputs remain low, the average deadweight SQQ neared £5 per kg at 498p.

In contrast, in the week ended April 21, the GB old season lamb SQQ fell by 16p to settle at 188p in the live ring compared to the previous week. The number of new season lambs increased with the result the SQQ eased slight on the week at 227p per kg. Finished ewe prices fell £7 per head on the week at £69.