AT COLCHESTER MARKET
LAMB BONANZA CONTINUES
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As this report is being written (early June), lamb prices are still at record levels, with the number of new season lambs seemingly inadequate for the demand; let us hope this trend continues throughout the summer. With the move from light lambs to 42-45kg lambs a strong trend, we are seeing excellent returns for new season lambs at between £140 to £160 in many cases, particularly where lambs were well finished but not fat. This is such an encouragement for sheep producers. It will be interesting to see where replacement stock is valued in the July sales. The cull ewe trade is also strong, with numbers easily absorbed in all sections. As would be expected at the time of year, old season lambs are reducing in number substantially, but these are still wanted at the time this report is being written, with old season lambs still seen to £150 a head and above with buyers keen to purchase weight. The cattle trade is also substantially better than we had anticipated and much better than 12 months ago, with well-finished prime cattle easily trading between 220p/kg and 250p/kg, with the relaxation
GRAHAM ELLIS FRICS FAAV FLAA For and on behalf of Stanfords T: 01206 842156 E: info@stanfords-colchester.co.uk
www.stanfords-colchester.co.uk in Covid-19 regulations ensuring the catering trade is increasing and helping the demand. The increased prime cattle trade is also reflected in the store cattle. Prices are well above 12 months ago, with farmers looking to replace stock sold to advantage. We also saw a strong trade for cull cows and over-age prime cattle, with the wholesale catering trade looking to absorb this meat for processing and the better weather again helping the trade here with outdoor catering increasing in the summer months. It was also good to see the pig trade increasing, although it is still at low levels and a much greater increase is required. With feed prices at exceptionally high levels, pig producers still have marginal levels of return and let us hope this increases with the summer outdoor catering
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season. The cull sow trade is also increasing and we are not in the doldrums of January and February, when it was almost impossible to shift cull pigs. With the better weather at the beginning of June, tremendous growth was seen in arable crops, with a good harvest now looking likely despite some areas of East Anglia still having lower than anticipated rainfall but in general crops look tremendous and yield potential is certainly there. Grass is also at last growing, the warm weather which arrived in early June boosting the grass growth giving graziers of sheep and cattle the benefit of natural, cheaper food.
LUMP SUM EXIT
SCHEME CONSULTATION The National Sheep Association (NSA) has welcomed the consultation launched by DEFRA on the proposed lump sum exit scheme and the delinking of basic payments as “a further step towards developing clarity over the new future farming schemes and what will replace the BPS”. The consultation, launched on 19 May, lasts for 12 weeks and focuses on the exit scheme – which will offer lump sums to farmers who want to leave the industry to help them do so “in a planned and managed way” – and delinking direct payments. On de-linking, DEFRA has said: “The Government plans to phase direct payments out over a gradual seven year transition period, to move to a fairer system. The consultation includes plans to separate the payment from the amount of land farmed, from 2024. This will simplify the process for farmers, allow them to focus on running their business and encourage them to take up the government’s new Environmental Land Management schemes, which will reward sustainable food production and environmental improvements.” NSA Chief Executive Phil Stocker responded: “While this consultation frames some of Defra’s thinking, we will still have to wait until October for final details and the clock is ticking fast in terms of the reductions in BPS and the development of new future farming schemes. At this stage, NSA’s thinking is that we welcome support to help those who want to retire to do so with dignity, more so than we want to see farmers encouraged to exit.” The NSA has also said it “would not want to see a new career made from devising ways to take benefit from the scheme without meaningful change on the ground”. The consultation closes on 11 August.
