Organic farmers secure lamb supply with price agreement

Livestock farmer group Graig Producers has made an agreement with Dunbia’s Welsh abattoir in Llanybydder, guaranteeing minimum prices for organic lamb. The organisation hopes to encourage its members to produce organic lamb year-round and avoid the need for imports.

All organic lamb supplied to Dunbia’s plant will be priced £4/kg in January 2012, rising to £4.70/kg in May. After that, farmers will benefit from a minimum premium of 10p/kg per month.

Graig Producers managing director Bob Kennard said: “The main point is that these are guaranteed minimum figures. In reality, prices may well be above the levels we have agreed, but they should, together with a minimum organic premium, be viewed as a positive sign that the market continues to source UK organic lamb all year round.

“We hope that our 400-plus farmer members will react positively to this commitment from Dunbia, and ensure production continues throughout the year.  We are in no doubt that there is sufficient lamb being produced to supply the market throughout the year, but farmers need to have confidence that the prices paid in the winter and spring reflect their increased costs of production.”

Dunbia’s managing director Paul Edwards said: “We hope this will give confidence to organic producers that it is worth producing finished organic lambs all year, but particularly in the period from January to June.”