Why Irish lamb prices will have to stay low to be competitive next year
Despite Irish lamb exports increasing significantly this year, it looks like prices will need to remain low to keep pace.
According to the AHDB, with higher production rates anticipated in the coming months, there is potential for Ireland’s export growth to continue.
How much of this sheep meat will find its way across the Irish sea is uncertain, however, as higher lamb slaughterings are similarly anticipated in the UK early next year.
The AHDB says with a late Easter stalling demand for lamb early in 2017, and the sterling/euro exchange rate expected to remain in the UK’s favour, Irish lamb prices will likely come under pressure if their product is to remain competitive next year.
To the end of October 2016, according to the Ireland Central Statistics Office (CSO), Irish sheep meat production was 2pc higher than the year earlier figure at 49,600 tonnes.
However, throughput was unchanged overall, and the production increase was instead driven by a greater proportion of adult sheep slaughterings.
At 327,000 head, adult sheep throughput was a significant 22pc higher than during 2015 across this period.