Beef and lamb farmers seeing more of retail prices

UK farmers received a larger share of the retail price of beef and lamb in August 2016 than in the same period over the past two years, according to the latest report by Hybu Cig Cymru – Meat Promotion Wales (HCC).

UK farmers received a 52% share of lamb prices and a 50% share of beef retail prices in August, but the market has experienced fluctuations since the start of the year.

In the lamb sector, the lowest share for UK farmers stood at 49% of the retail price in January but steadily increased to 54% by March. Improved farmgate prices, helped by the fall in the value of sterling, led to producers receiving a larger proportion of supermarket prices.

The lowest share paid to beef farmers in 2016 so far has been 45% in April, but the situation has gradually improved due to a tightening of supply and steady demand for the product.

John Richards, HCC’s industry information executive, said: “The main reason for any fluctuation in the farm-retail price spread is changes to the prices farmers receive for their finished animals in a highly competitive marketplace.

“In August 2016, the farmer’s share for lamb was 10% more than in the same period in 2015, and this reflects the market at that time. A number of factors, including an unpredictable exchange rate and varying supply will influence the development of the situation in the months to come.”

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