Scottish auction markets are looking forward to another buoyant year in 2023 and auctioneers remain positive when it comes to demand for Scottish sheep, both prime and breeding.
Last year, lamb sales remained steady and strong, ending on a high. There was a tangible boost in November on the back of Lamb for St Andrew’s Day, which saw almost 20% increase in year-on-year liveweight prices for the same month, as farmers, marts and 43 butchers got involved from Selkirk to Shetland to deliver lamb to school children to cook and eat for the event.
In the year ahead, the sheep sector faces some real headwinds. We all understand the pressures of input costs on the whole industry – from farmgate to live ring and beyond. This will take careful management and a focus on making sure that every pound spent is well invested on farm.
This year also begins with concerns about New Zealand lamb appearing on shelves which may put downward pressure on sheep prices throughout Spring. The usual excuses have appeared about lamb now being out of season in the UK, however the harsh reality is that UK producers have to find a way of promoting our own product values over those of imported produce, whether we agree with imports or not.
Unfortunately, the cost-of-living crisis makes cheaper produce very attractive to consumers. This makes it critical that we all strive to maximise our outputs versus costs and inputs. Easier said than done, however a focus on cost management and using the live ring to amplify marketing value is vital as we can see that no additional support is coming our way from any of the governments around the UK.
It does feel as if numbers coming forward later in 2023 may be tighter. Lambing percentages may be adversely impacted by the challenging weather seen in 2022. We also continue to see campaigns that put tree planting ahead of livestock farming across the UK and especially in Scotland. This has put sheep farming in direct competition with tree planting, and given the money being pumped into trees from private and government sources, sheep farming is losing out.
Whilst we all need to take climate change and the environment seriously, the current direction of travel spells danger for the rural community. IAAS will continue to campaign and lobby for the right tree in the right place and to protect rural communities and red meat production in these areas.
However, it does appear in the short term at least, that we will continue to see downward pressure on breeding stock numbers. With that challenge in our midst, it seems reasonable to project that British sheep meat supplies may well remain tight as we head into the second half of 2023 which, for those remaining ‘in the game’ should help support prices through the live ring as we move through the year.
This is where the mart comes again into its own. With its open price discovery system there is no fairer way for a willing buyer and seller to determine the value of an animal, and, despite the best efforts of other actors in the industry to talk prices down in their favour, the auction ring remains the critical component when it comes to identifying the true value of stock and the fairest price in the pocket.
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