§ Mr. Barry JonesTo ask the Secretary of State for Wales if he will make a statement on the prospects for the Welsh sheepmeat industry. [39277]
§ Mr. Win GriffithsSlaughtering of lambs to date in 1998 has been significantly higher than last year due to farmers holding lambs back which would normally have been sold earlier. Low producer returns were a major factor. The high volume and in many cases the poor quality of animals marketed have depressed prices paid to producers. The Government's recent decision to introduce private storage aid for the sheepmeat sector in the UK should help to bolster prices and improve short term returns to producers.
Latest agriculture census figures show an increase in the breeding ewe population in the UK. This is expected to lead to a 12 per cent. increase in lamb production in 1998. As a result, supplies of sheepmeat are forecast to increase by 4 per cent. in 1998 in the UK. This is likely to continue to put pressure on producer prices throughout the year. However, the Meat and Livestock Commission (MLC) expect a return to a more orderly supply in the Autumn; this should improve matters although prices are not expected to attain the levels of two years ago.
On a more positive note, the latest available MLC data indicate a 10 per cent. increase in household lamb purchases in February compared to last year.
The Welsh Office, through its funding of Welsh Food Promotions, will continue to ensure that efforts are maintained to promote and market Welsh lamb at home and abroad. Given the general over supply in the market and the strong pound, it will be important to emphasise the farm-assured quality and wholesome image of Welsh lamb in order to stimulate demand.
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