June 18, 2012

UK beef, sheep export to benefit on exchange rate fluctuations

In order to benefit from exchange rate fluctuations, the English beef and sheep industry should be taking advantage of export opportunities outside Europe, according to EBLEX.

The strengthening of the pound against the euro, up 8.3% over the last year, combined with the recent fall in sheep prices is creating a growing concern in the industry for English meat on the European markets, said Peter Hardwick, head of trade development.

"However, the current situation is creating more opportunities on world markets because we are still performing poorly against the international benchmark dollar, down 6.72% in the last year, which is making our products attractive in non-EU countries," said Hardwick.

Due in part to good weather conditions, the annual seasonal fall in lamb prices has hit earlier than normal. However, the fact that the New Zealand dollar remains strong against the pound has helped make UK exported beef and lamb more competitive and reduce the impact of this, said EBLEX.