Supermarkets have significant effect on lamb prices

The failure of the major retailers to support the Welsh lamb industry was the major discussion point at the Carmarthenshire NFU Cymru Livestock meeting held at Carreg Cennen, Trapp.

Prys Morgan, Hybu Cig Cymru Industry Development Manager provided a presentation on the current state of the sheep industry in Wales. He highlighted that 72 % of Welsh lamb is sold through supermarkets; as a result their buying policy has a significant effect on lamb price. However, this year retailers had extended the period over which they relied on New Zealand imports which has had a significant effect on lamb prices in Wales.

Carmarthenshire NFU Cymru Livestock Delegate, Garry Williams said, "Welsh farmers work hard to provide the retail sector with a quality product for the entire 12 months of the year; it is disappointing to see our efforts undermined by the major multiples increasing the proportion of New Zealand lamb on their shelves in the first half of this year by nearly 15%."

He continued, "Lamb consumption figures have risen by 5% this year and the retail lamb price continues to rise, this should point to a rise in farm gate prices but so far the opposite is the case. Retailers must realise that I, and many farmers like me, will not continue in the sector unless they allow us to make a profit."

The NFU will be meeting with all the major retailers in the coming weeks to re-iterate that in a world where support is decoupled from production, farmers must be profitable to remain in that sector. Equally, continuity of supply of home produced lamb is not an issue in the first quarter of the year and reliance on lamb from New Zealand, which has travelled thousand of miles, is not necessary.