A drop in new season lamb prices have been causing farmers more headaches.
Farmer Paul Parker, of Parker's Farm, Ashburton, said prices were £15 down on last year. On Monday he took 16 lambs to Exeter Livestock Market and got only £45.80 a head. Several farmers were so disheartened they took their animals home again. 'I lamb earlier, I put cake into them because they want the early lambs and now they don't want the early lambs,' he complained. Meanwhile, feed prices have risen £20 a tonne. Now Mr Parker only expects to break even. He says other farmers with bigger flocks will be worse affected than him – he has only 80 ewes and about 100 lambs. He claimed that supermarkets were buying in cheaper French lamb, though Hussey's auctioneer, Alan Venner, said he was not aware of this.
Mr Venner agreed it is a 'bit of a disaster' for the farmer but he predicted prices should rise again in a week or so. 'In 37 years I don't think I can ever remember seeing prices fall away for new season lambs in April. I have seen prices fall for hoggs (old season lambs) but generally during April you see rising prices. This time last year lambs were getting between £60 and £70. This year it's only £40-£50.'
He said a combination of factors were to blame. Supermarket market buyers had bought in 10 per cent more New Zealand lamb, having been caught out on high prices for hoggs and lambs last year. In addition, some farmers, hoping for higher prices, had held on to their lambs, instead of moving them in January or February. This had caused a glut. Supermarkets were reluctant to move over the new season lambs until they could be sure of a steady supply.
Mr Venner forecast the low prices would have a knock-on effect on other parts of the trade, for instance the price of cull ewes, a great favourite in curries, and the buy-to-replace market would also probably fall as a result. 'The farmer has worked damn hard, he's been out in his lambing shed and getting all these lambs ready to bring to market and finding the price he gets is well below expectations,' he said.
'My gut feeling is that within the next couple of weeks trade for the lambs will rise. 'Hoggs will dry up, New Zealand will dry up and supermarkets will be forced to move over to new season lamb.'