Producer share of lamb retail prices remains stable

The producer share of the retail price for lamb has remained over 50% during the past few months, according to AHDB Beef & Lamb. 

This is contradiction to typical seasonal changes, as declines to the measure are usually observed in late summer and early autumn when farmgate lamb prices decline.

This has resulted in producers seeing an above average share of the retail price during the July-September period.

Despite the figure for September declined by two percentage points on the previous month to 50%, this remained six percentage points higher than the same period in 2015. Equally, this figure was two percentage points above the five-year average.

These producer-favourable circumstances have been attributed to strong farmgate lamb prices, supported by the weak pound following the Brexit vote and tightening supplies. AHDB Beef & Lamb claims that since retail prices have not been increasing to reflect this, a greater proportion of this price is now going to the producer.

The report goes on to say that during September, overall retail prices decreased by 1% on the previous month.

This change was driven by a 2% decline in the price of fillet end leg and minced lamb, while cutlet chops also declined in value by 1%.

Most other cuts remained stable overall, except for the cheaper bone-in shoulder cuts which showed price appreciation over the month of 2%. In comparison to September 2015, overall retail prices are 1% higher.

This is attributable to the price of boneless shoulder (up 6%), loin chops (up 5%), whole leg (up 3%) and bone-in shoulder and fillet end leg (up 1%). Cutlet chops showed price declines (down 2%), as did diced lamb and lamb steaks (down 1%), while diced and minced lamb prices remained stable.

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