Tight livestock supplies and competitive prices are creating valuable opportunities for producers as the industry heads into 2026, according to the Livestock Auctioneers Association.
The LAA said live auction markets continue to underpin strong sheep and cattle values at a time when falling stock numbers, declining government support and shifting land use are reshaping the sector. Auctioneers report that competitive bidding in the live ring remains central to price discovery and farm profitability.
LAA executive secretary Chris Dodds said: “Competitive live auction markets continue to support strong prices.” He added that “the live ring remains the most effective environment for achieving true market value, with competitive bidding consistently driving stronger prices than direct supply chains”.
Stock numbers are tightening across many regions as producers scale back, environmental schemes offer alternative income streams and fewer farms expand herds and flocks. While this raises concerns for future supply, the LAA said it is helping to keep prices firm in the near term.
“Fewer animals in the system are helping to maintain strong values, creating opportunities for those still actively producing,” Mr Dodds said.
LAA policy and strategy officer Alastair Brown said the competitive tension in live markets continues to influence the wider trade. “Everyone in the ring is jostling for the best price, that competitive tension is what delivers value,” he said, adding that “live markets set the benchmark, and deadweight prices follow”.
With limited government support available, he said farmers are increasingly reliant on securing the strongest possible price through open competition.
Alongside market dynamics, the LAA warned that tax and policy pressures are increasingly affecting business decisions. The association welcomed the Budget decision allowing the £2 million inheritance tax threshold to transfer between spouses, but said it does not go far enough to protect family farms.
Many businesses now exceed the threshold purely due to land values, the LAA said, discouraging retirement and limiting opportunities for new entrants. Auctioneers, many of whom are also qualified land agents, are playing a growing role in providing valuations, succession planning and professional advice.
Animal health remains another compounding pressure. Following the easing of bluetongue restrictions on 10 November, England and Wales are now operating as a single bluetongue BTV-3 restricted zone, allowing cross-border trading after months of disruption.
Losses have remained minimal, but auctioneers stressed the importance of evidence-led veterinary advice and ongoing vigilance as temperatures rise in the year ahead.
Regional reports point to a broadly resilient trade. In England, Stephen Dodsworth of Darlington Farmers Auction Mart said cattle supplies remain tight, largely due to the decline of traditional hill-bred systems and ongoing cost pressures.
He said the sheep trade has softened recently due to an oversupply of heavy lambs and a shortage of export-weight animals, adding that “oversupply of heavy lambs depresses price, and the trade is likely to remain static”.
In Wales, McCartneys partner and Welsh LAA chair Katie Davies said lamb prices have held firm through the year, supported by tight supply, while cattle demand continues to outstrip availability in the suckler beef ring.
She said drought conditions earlier in the season led to lambs being finished sooner, helping to maintain a more controlled autumn supply, and welcomed the easing of bluetongue restrictions while warning that disease and weather remain key risks.
The LAA said access to transparent, competitive markets will be increasingly important as environmental change, disease threats and tax pressures converge.
“As stock numbers fall and uncertainty grows, the live auction system is proving its worth,” Mr Dodds said. “The industry faces challenges, but there are also real opportunities. Our role is to ensure farmers, markets and rural communities are able to make the most of them.”
