Pigs Can't Fly But Their Prices Might - Livestock Price Update

The weaker sterling is affecting the UK's export/ import

balance, which is, in turn, strengthening demand for local beef

and lamb prices.

Until recently, the red meat sector has not experienced the

rapid increase in output prices that the dairy and most of the

arable sector have enjoyed. But it did experience the same fuel

and fertiliser input cost increases, with the added burden of

much higher feed costs from cereals and protein.

However, for much of the current year beef and sheep prices

have steadily moved up, with pig meat recently joining in. This

is not to say that all red meat enterprises have become

profitable, but there is at least some chance for more

efficient farmers to profit.

Beef

Beef prices have increased healthily since the beginning of

the year (Figure 1). The weakening sterling has helped, making

our exports more competitive on the continent and imports

dearer. For example...