Lamb price bubble burst warning

That was the warning from one of the country’s leading retailer lamb buyers during an open day at processor Dunbia Llanybydder on Tuesday.

Producers from across Wales and beyond were told by Sainsbury’s Tom Harvey there could be a backlash from consumers still reeling from the country’s economic downturn and finding it hard to meet ever-increasing household spending needs.

“As the UK’s second biggest lamb retailer, the product is really important to us, as is its quality,” he said.

Current good prices

“Market prices are very good for producers at the moment – but predicting whether they will persist is very difficult,

“The messages we are getting from customers is that there is a great deal of uncertainty and without doubt the retail market is going to be tough.

“The General Election has settled things a little but consumers are still unsure of their income levels over the coming months.

“The latest statistics show disposable income is down by 10 per cent and that is going to have a direct effect on how consumers shop.

“It means that as an industry, from start to finish, we have to meet that challenge by working as one.”

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