Cattle and sheep prices rise
HISTORICALLY high market prices for cattle and sheep are helping to push Wales’ agricultural sector into the black, according to market analysis by Hybu Cig Cymru – Meat Promotion Wales (HCC).
Welsh Government projections, released as part of its ‘Aggregate agricultural output and income’ and ‘Forecast of farm incomes in Wales’ statistical reports, show that agriculture is now worth almost £1.6 billion to the Welsh economy.
Beef and sheep farming – along with the dairy sector – are by far the largest contributors to this value, with the PGI Welsh Lamb and PGI Welsh Beef brands helping to secure millions in sales in the UK and export markets.
According to HCC, strong cattle and sheep prices at market are continuing to help sustain profitability, although the weather has had an impact.
“Market prices for June have continued the trend we’ve seen since the beginning of the year,” said HCC’s Data Analyst Glesni Phillips. “Poor weather in early spring is restricting the number of new season lambs coming on to the market, which has contributed to prices remaining around 10p per kilo higher than last year. Beef cattle prices are also strong, helped by a barbecue boom in the warm month of May.”
However, Glesni noted that average farm incomes were still modest, and that uncertainty over access to vital European markets after Brexit meant that forecasting future price movements was unusually difficult.
“According to Welsh Government figures, average incomes on a beef and sheep enterprise in the Less Favoured Area (LFA – which makes up over 80% of Wales’s agricultural land) are only just over £25,000,” she said. “Given that market prices are unlikely to remain at this level, and that considerable political uncertainty exists over possible levels of exports and imports of red meat, this highlights the need for agricultural businesses to prioritise on-farm efficiency as part of their Brexit preparations.”