The producer share of the retail price of lamb in May fell compared to the previous month.
The measure declined to 50%, down four percentage points on the month and eight points lower than the share seen in the corresponding month last year. This was due to the sharp fall in farmgate prices driven by the higher volumes of lamb coming to the market. At the same time, retail prices have actually increased.
This is the second month in a row where the producer share of the retail price has fallen. In March, it was at its highest level so far in 2015 at 56%, level with a year earlier. However, in April, the producer share fell to 54%, four points down on a year earlier, as farmgate prices have declined at a sharper rate than retail prices over the course of the year.
According to the EBLEX retail price survey, in May, the month-on-month increase in the average retail price of lamb was driven by price increases for whole legs and fillet end legs, up by 3% and 6% respectively. The price of most other cuts either remained stable or declined. All cuts were cheaper than in the corresponding month a year earlier.