PRIME SHEEP PRICES MUST BE MAINTAINED TO ENSURE SUPPLY

NFU Scotland's Livestock Committee and the National Sheep Association (NSA) Scottish branch met at the Union’s headquarters at Ingliston, Edinburgh, yesterday (Thursday 16 June) to discuss the current state of the Scottish sheep industry. The organisations were adamant that current price levels must rally from their current low point if Scottish sheep producers are to have the confidence to maintain or increase the levels of prime lamb production in this country.

The Scottish sheep industry’s fragile economic state means that any sustained downturn in market prices will only lead to an acceleration in the decline of the national flock.

The market must also recognise that the extensive reduction in sheep numbers seen in other parts of Europe and key players such as New Zealand has significantly altered the balance between supply and demand for lamb on world markets. It is in the long-term interests of those involved in lamb supply chain in the UK to send out a clear message that home-produced lamb is wanted. If not, then future supplies - whether produced here or imported - will be limited.

NFU Scotland’s Livestock Committee Chairman, Rob Livesey said:

“The right message must be sent to producers to return confidence to the sector – especially in the face of further challenges/burdens to the industry, such as EID, which looms on the horizon.

“At recent discussions with other UK farming unions, the unanimous message was loud and clear that the future of lamb production is uncertain and that this urgently needs to be addressed.”

George Milne, Development officer for the NSA Scottish Region said:

“It is vital in order to maintain a sustainable and consistent level of production throughout the year to meet the supply chain requirements that firm lamb prices are maintained over the summer months.”

Mr Milne sent out the warning to everyone in the supply chain that “If lamb prices drop any further there is a real danger of seeing a continuing decline in breeding sheep across Scotland and surely at the current levels of production this would not be in anyone's interest. What is required at the moment is to see confidence rebuilt within the industry and that can only come as a result of prices being paid to producers which allow them to run profitable businesses.”