The NFU has expressed concerns over farmgate sheep prices, which it says need to stabilise to support producers’ businesses. The union has called on processors and retailers to make moves to support the sheep industry.

NFU livestock board chair Charles Sercombe urged those further up the supply chain to “take a long term view of the market” and avoid support farmers as the national flock appears to be growing  following many years of declining numbers and against a backdrop of sustained historically low prices.

He said, “The boom bust cycle of sheep pricing is not in the interests of the farmer, processor or retailer. We have seen an improvement of farm returns in the past year or so, but a sustainable supply chain depends on a fair return for everyone involved. Sending out negative price signals at a time when farmers are investing in their flocks is damaging and may actually lead to an erosion of farmer confidence. Rising input costs continue to erode farm margins and in many parts of the country, sheep need to remain competitive with other commodities.

Speaking today, the union chair said he believes supply and demand fundamentals have changed little in the sheep market and that current prices should be favouring farmers for bringing in spec lamb to market. He said,  “We need retailers and processors to act in the best interests of the whole chain and work to stabilise the lamb market. British produce is in demand on both home and export markets and the recent barbeque weather should help to boost demand for quality British lamb.”

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