DESPITE the reduction in the number of prime lambs forward for the early markets of this week, prices have steadied and are likely to remain so for the foreseeable future.

The only exception, is next week, when many farmers attend the Royal Welsh Show and numbers coming forward can be well down south of the Border.

On Monday, prices slipped 4.5p per live kg on the week, to average 212.5p per kg, which compares to 208.0p in England and Wales, where values dropped 5p on the previous seven days.

It was a similar situation on Tuesday too when despite a 34% and 35% reduction in the numbers forward south of the Border, and in Scotland, values fell 3.6p and 4.0p, to 208p and 210p, per kg respectively.

"Prices are still 20p per live kg ahead of this time last year," said Archie Hamilton, sheep auctioneer at C and D's auction mart at Longtown told The Scottish Farmer.

"Prices have steadied, but there are more coming forward. Good light lambs under 35kg are the cheapest because there are so many about but heavyweight lambs at 43-44kg are not being penalised purely because butchers are looking for carcases with meat on them," he added.

Conversely, Mr Hamilton said the ewe trade is flying at present with the last sale at Longtown witnessing prices rise £9 per head on the week, with a top of £154 paid for Texel ewes. Heavy ewes in particular are well up as the muslim market gears up for it's next festival at the beginning of September, Mr Hamilton said, adding that lighter ewes are unlikely to rise at the same level due to the increase in numbers coming forward as flockmasters spean their sheep.

While lamb prices have undoubtedly started their seasonal decline slipped, Stuart Ashworth, head of economics at Quality Meat Scotland, said prices remain firm in this country and throughout Europe due to reduced numbers available.

“The relative firmness in price is being reflected across Europe in the countries producing heavy lambs,” said Mr Ashworth.

“The French producer price is 13% higher than a year ago, the Spanish price is 14% higher and the Irish price 1% higher.

“In contrast, the price for light lambs, defined as carcases of less than 12.5 kg, is struggling to match last year’s levels in the two main lamb-producing regions. It is 9% lower in Greece and 6% lower in Spain although light lambs are selling well in Italy and Croatia.”

The firmness in the UK heavy lamb price is, observed Mr Ashworth, occurring despite modest increases in the volume of new season lambs reaching UK abattoirs compared to this time last year. In England the weekly kill during June reported by Defra was 3% higher than 2016.

“The current price behaviour we are seeing suggests a degree of positivity from the demand side of the equation, perhaps coupled with reduced supplies from outside the UK,” said Mr Ashworth.

In Ireland the volume of new season lamb is also currently running higher than last year but they too have seen producer prices holding similar to 2016. Price movements in France, however, reflect a lower domestic supply. French lamb slaughterings during May, for example, were 2% lower than last year and, with a ewe population reported in December 2016 to have fallen by 1.5%, reduced numbers remain likely.

“Deliveries from New Zealand to the UK and Europe are also running lower than year-earlier levels,” said Mr Ashworth.

“Over the past six months New Zealand reports around 20% less sheepmeat dispatched to GB. On the basis of a 20kg lamb carcase, this shortfall in volume could amount to the equivalent of around 5% of the UK weekly production at this time of year.”

With New Zealand deliveries into the mainland European market also falling short of last year, there is potential export opportunity for UK abattoirs, he added.

UK export statistics for 2017 up until the end of April show growth in export volumes to Europe compared with 2016, helped by exchange rates that make UK lamb competitive in European markets.

“The net effect of these trade patterns and opportunities is to boost competition in the market place and support price,” stated Mr Ashworth.