The EBLEX six month report has shown the UK sheep and beef sectors are in statistically positive positions, although in some cases producers have their doubts.

Beef

In the beef market, prices have reached an all-time high, but with input costs rising relentlessly farmers remain reserved. EBLEX, in its latest report, said the current outlook in the industry was one of "cautious optimism."

The report revealed, "With finished cattle prices reaching an all-time high of comfortably over 300p/kg deadweight this summer and the cull cow trade showing similarly unparalleled strength, cautious optimism is the tone of the latest market outlook."

Reduced imports look likely to last throughout 2011 and into 2012, which, in tandem with increased demand from continental Europe puts UK producers in a strong position. However, producers say spiralling feed costs have taken the edge off the good news.

Speaking to The Yorkshire Post Kim Haywood, director of the National Beef Association, said money gained in the new export market for hides and offal, touted as a promising development for UK farmers, was being used to subsidise supermarket prices rather than increasing incomes.

She said, "Even at £3 a kilo deadweight you are 50p short of the cost of rearing," and pointed out that with diesel prices up 40 per cent and other inputs also increasing the prospect of farmers making real money looked doubtful.

Sheep

Although it meant a period of touch-and-go for the grain harvest, the weather this spring has proven to be a boon for the livestock industry. In its six month report, EBLEX showed the national lamb crop is expected to be even higher than stated in previous forecasts.

The mid-season market outlook revealed relatively high retail prices, low import levels and the pressures of the economic downturn on consumers will result in increased UK lamb consumption.

The EBLEX report said demands would be sustained for the rest of the season and into 2012, affording the UK a strong position in the global sheepmeat market. This is caused by high export demand for UK meat and low import availability on the domestic market, after New Zealand’s import volumes for the first half of the year were down by 20 per cent. Overall Overall, UK lamb imports in 2011 are forecast to be down on last year and just over three quarters the level of 2009.