UK lamb prices have moved above £7/kg as tight supplies, strong export demand, and festive retail performance support the market at the start of 2026.

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UK lamb markets have opened 2026 on a firm footing, with prices moving above £7/kg deadweight as limited supplies continue to support trade across abattoirs and auction markets.

The Great Britain deadweight Standard Quality Quotation (SQQ) rose to 721p/kg for the week ending 3 January, marking an increase of nearly 60p/kg over the past two months. Buyers have been active following reduced slaughter weeks over the Christmas and New Year period, while liveweight prices at English and Welsh auctions have also strengthened to 342.5p/kg, up year-on-year.

Market operators report particularly strong demand for leaner, export-spec lambs, though heavier finished lambs are also finding outlets. Analysts note that lamb sales performed well at retail over the festive period, providing further price support. Cull ewes have been trading around £150 per head, while store lambs have generally ranged between £110 and £120.

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Supply Constraints Remain Key Driver

Weekly sheep slaughter in early January was estimated at 180,500 head, down 7% on the same period last year. The decline reflects a smaller lamb crop and a sustained tightening of supplies throughout the second half of 2025, factors that analysts say are underpinning current price resilience.

Looking ahead, market watchers highlight that the volume and timing of carryover lambs will play a critical role in shaping price trends through the spring.

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New Carcass Reporting Rules Introduced

From mid-January, new regulations in England require larger abattoirs processing more than 2,000 sheep per week to report carcass prices, classifications, and weights, with smaller processors able to participate voluntarily. The measures are designed to improve transparency and consistency in sheep pricing, aligning sheep carcass grading more closely with existing cattle systems.

Source:Farmers Weekly, This article is a condensed and independently written summary of original reporting and market data from Farmers Weekly, adapted for Dalytrading.co.uk.