Positive prospects for lamb farmers as EU forecasts tighter supplies

The prospects for lamb remain positive with the European Union forecasting reduced production and tighter supplies for 2014 and 2015.
Positive prospects for lamb farmers as EU forecasts tighter supplies

Irish Farmers’ Association sheep committee chairman John Lynskey said the EU was predicting sheepmeat output in the member states to contract by just under 1% in 2014 to about 916,000 tonnes, with most countries indicating a further decline in supplies for 2015.

The fall in production is largely driven by lower output in France, Spain and Germany. French production is expected to be down 2.5% with some recovery next year. However, production in Britain and Ireland is set to rise in 2014.

Mr Lynskey, who attended the European Commission Civil Dialogue group meeting on sheepmeat in Brussels this week, said production was set to continue its reduction into 2015, but at a slower rate.

“One of the largest sheep flocks in the EU in Spain is set to decline a further 9% in 2015. Production is also set to decline in Germany,” he said. Mr Lynskey said the EU was predicting a small increase in production in France, Britain and Ireland due to increases in the breeding flock.

He said a very positive aspect of the trade in 2013 was the major increase in EU exports of sheepmeat and live animals, up 34% to 74,467 tonnes in carcass weight equivalent.

In 2013, the EU exported 1.8m sheep live, with Libya and Jordan as the main destinations. The live market is equally strong in 2014, with over 1.2m sheep exported live to the end of August.

The IFA sheep farmers’ leader said New Zealand imports were down 7% to around 118,000 tonnes for the January-July period this year. However, this reduction in New Zealand product has been compensated for somewhat by an increase in Australian imports in the region of 22%, and an 11% increase in imports from Chile.

“The price prospects for 2015 remain positive with the EU Commission forecasting price increases for both heavy and light lamb,” Mr Lynskey said.

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