Mintec’s EU lamb prices increased 4% m-o-m in June, on the back of supply shortages due to logistical issues driven by COVID-19.
EU lamb prices showed a bearish trend in the earlier part of the year. A reduced foodservice demand due to lockdown measures driven by the coronavirus pandemic and lower home consumption during the Easter and Ramadan celebrations, led to weaker lamb prices.
Market participants expect that if export volumes and prices continue to decline in the second half of the year, the EU 2020 lamb production may decrease even further, as slaughtering would be discouraged. However, prices are expected to strengthen in weeks to come due to the Islamic festival of Eid-al-Adha. The festival will be held between 30th July and 3rd August 2020. Industry reports suggest there is currently demand for all weights of lamb as processors generally begin sourcing animals approximately a month before the festival. As a result, Mintec EU lamb prices have increased 5% m-o-m in the four weeks ending 24th June 2020.
Along with increased lamb consumption, the festival is also expected to support beef demand and thereby prices in the next month.