Beef and lamb farmgate prices should stay strong, say NFU livestock chairmen

Wednesday 24 June 2009

WITH both beef and lamb supplies short and demand and market conditions stable there is no reason why prices should not be strong throughout the rest of 2009, according to the UK farming unions and IFA (Irish Farmers' Association).

The unions’ livestock chairmen met this week to discuss a number of issues including market conditions and forecasts for 2009. The unions believe that fundamental market conditions mean producers are well placed to demand strong farmgate prices for their livestock.

Speaking after the meeting, NFU livestock board chairman Alistair Mackintosh said: “The feared supply imbalance being talked about in the late summer may well not materialise. It looks like the market conditions will be healthy for livestock farmers and supply looks likely to remain tight.

“It is vital that, when price pressure is applied, farmers remain confident and consider carefully the market conditions in deciding when to supply beef and lamb. It is crucial that farmers understand the market conditions and act accordingly.

“Over the last 12 months confidence has returned to both the sheep and beef sectors. Continued confidence in these sectors will lead ultimately to greater investment and a better end product being supplied to consumers. Looking at the current market conditions and our market forecasts, producers have good reason to remain confident of achieving sustainable farmgate prices during 2009.”