Confidence boost for sheep sector
Scotsheep chairman hails improved prices and better outlook
Published:
A GROWING sense of optimism in the sheep sector should allow producers to look forward with greater confidence, the chairman of the industry's biennial showcase said yesterday.
Jack Clark said greatly improved prices and a better outlook lay behind his prediction as he outlined the programme for the Bank of Scotland Corporate-sponsored Scotsheep, being held at Northhouse, Teviothead, Hawick, on June 4.
He, however, appealed to the Scottish Government to ensure any movement restrictions imposed if the midge-borne bluetongue virus enters Scotland do not interfere with the sheep trade.
He warned any repeat of the interruptions that happened after last year's foot-and-mouth outbreak would cause serious financial problems for a sector that had only just returned to its feet after years of poor returns.
Mr Clark said: “We've gone from looking into the abyss of having a welfare scheme that took about 105,000 lambs off the market at £15 each to a point where there are justifiable reasons to look forward to this autumn with a degree of confidence."
The turnaround in cash terms was significant with old seasons lambs currently making 150p per kg (68.18p per lb) on average against 87p (39.45p per lb) at the same point a year ago. Prime standard quality quotation lamb had similarly risen to 199p per kg (90.45p per lb) on average from 117p (53.18p per lb).
Mr Clark believed higher grain production costs might mean more arable farmers returning to livestock so they can make full use of the muck and save on soaring artificial fertiliser costs.
Bank of Scotland Corporate agriculture director John Taylor pointed to the likelihood of the euro remaining strong against sterling for the remainder of the year, albeit that current rates of about 78-79p might weaken slightly.
Rates above 76p would ensure continued demand for UK sheepmeat from continental buyers as well as lift the value of farm subsidies.
Mr Clark defended the continued use of subsidies, warning that without them there may need to be further considerable increases in ex-farm and retail prices to ensure farms are viable.
He too backed the growing view that a return to headage-based livestock payments is needed to secure the future of livestock production on hill and marginal land.
Scotsheep, to be opened by the Duke of Buccleuch, will feature a range of seminars and more than 150 trade stands as well as a record 41 sheep breed societies.
There will also be a range of seminars on Europe's latest reforms to the Common Agricultural Policy, the outlook for prime lamb price and easy-care management.
