Keen demand for beef and lamb predicted

May 7 2008 by Sam Wood, The Journal

AT LAST there could be some good news for beleaguered beef and sheep farmers, say meat industry experts.

Strong export demand is pushing up prices and there are hopes the recent decline in cattle numbers could be arrested.

One-third more fresh and frozen UK beef was exported in January and February than in the same time last year, according to the economics team of the Agriculture and Horticulture Development Board meat services. In addition, UK cattle numbers fell 2% on the year, leading to tightening supplies and higher prices.

Margins in the beef industry remain tight, but if cattle prices continue to rise, the rate of decline may well slow – at least in the short term.

Beef from the UK is expected to remain in demand, as the fall in cattle numbers means slaughterings are forecast 4% lower this year. The number of sheep in the UK rose in last December’s survey, driven by an increase in the number of lambs under one year old.

Slaughterings are consequently forecast to be higher in 2008, and this increased availability is expected to help support a rise in sheep meat exports.

Lower production in some EU member states will also boost demand for British lamb. Economics team business support manager Jonathan Eckley said: “The availability of cow beef and favourable exchange rates saw a 42% rise in shipments to the Netherlands during January and February and exports to Ireland nearly doubled during the same period, compared with the same two months of last year.

“If sterling remains weak, UK exports should remain competitive on the EU market.”