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Sheep prices are likely to fall this year as supplies look set to rise, says AHDB Beef and Lamb.
Many producers had hung on to older livestock, said AHDB analyst Mark Kozlowski, and these would start to be culled, adding to sheep meat on the market.
In addition lamb slaughterings were expected to rise, partly due to a big carry over from 2015.
High production would however be offset to a degree by fewer shipments from New Zealand, the UK’s main competitor domestically, said Mr Kozlowski.
UK producers may also benefit from higher demand in France, the most important destination for UK sheep meat exports.
The French have a large appetite for lamb, but their sheep producers currently face movement restrictions from Bluetongue disease.
Better prospects for UK sheep prices may also be on the horizon in 2017, as UK production is forecast to fall, said Mr Kozlowski.