According to Scottish agri-economist Stuart Ashworth the United Kingdom’s lamb export progress was because of a recovery in shipments to France and a growth in shipments to Belgium and Germany.
Non-European Union exports by UK producers had also grown this year though they accounted for only about 7% of all exports.
As for NZ lamb sales into the EU, NZ traders were struggling to make full use of their quota, with deliveries in the first half of 2017 down 21% on the year; equivalent to 25,000 tonnes.
“UK trade data shows deliveries of NZ lamb down 23% in the first half of 2017 though deliveries of fresh chilled product have seen a more modest decline of 17%,” he said.
Meanwhile, Beef + Lamb NZ had released estimates of the size of the NZ breeding flock showing a fall of 0.9%. Nevertheless, improved ewe and hogget condition meant it forecast an increase of 1% in the 2017-18 lamb crop.
“Having achieved growth in markets closer to home it seems unlikely that NZ will make full use of their European quota for yet another year,” Ashworth, head of economics services at Quality Meat Scotland, said.
“Nevertheless, Europe remains a key and high-value market for NZ exporters.”
Back on the UK trade, he said the latest data indicated a significant growth was taking place in UK sheep meat exports this year. It was undoubtedly being helped by the continued weakness of sterling against the euro.
While European prime lamb prices were holding at 3-4% higher than last year, the sterling/euro shift meant that in euro terms, the UK lamb price in the rest of the EU was almost 1% lower than last year, a factor that was clearly improving the competitiveness of UK lamb exports.
Ashworth said the size of the UK’s 2017 lamb crop was expected to be at least as big as last year.
