Chasing stability

Although still a healthy market, with sales worth £589m in the 52 weeks to 10 July, there has been an annual decline of 7.2% in value and 18.7% in volume during the year. This has been largely driven by the decline in consumption, with leg and shoulder roasting joints affected in particular, resulting from low availability and high prices.

As Richard Cullen, of the Agricultural & Horticultural Development Board (AHDB), explains: “We’re eating less, importing less and exporting more.”

Issues such as flock rebuilding in Europe, harsh weather in New Zealand during lambing and growing demand in the Far and Middle East are expected to lead to continued strong prices on the export market. David Raine, executive board member of the National Sheep Association (NSA), says: “The export volumes seem to be fairly robust because of the exchange rate. Those exports have been driving the price of lamb on the UK market and that has given the supply side some cause for optimism, which is hopefully beginning to curtail the fall in breeding sheep numbers that we have seen over the past 10-15 years.

“So the national flock has been stabilising. There is a little bit of caution about and, of course, we have seen pretty steep cost increases for agricultural inputs and that’s eroding profitability. The message from the market is that our export markets are strong and the export prices have been strong — but also there is a domestic market that needs to be supplied, so there is a cautious optimism on the supply side. Farmers are looking to at least retain volumes of production, possibly modest increases.”

For Jean-Pierre Garnier, head of export services at Eblex, a nettle is there to be grasped in terms of export. “We have a fantastic situation in the lamb market where we produce 40% of European production nowadays and it’s a huge thing to note. Marketable lamb,” he explains.

“We are the only people with large abattoirs, we are the only people with large sheep enterprises. You cannot find anybody that has 800 ewes in Ireland, for example, but in the UK it is the norm, or even in France. For us we are in a priveleged position and we have got to market it. We are in a market situation where we have no competition on lamb.”

Garnier recently hosted a visit of some 17 visiting professionals from Germany, who were given a taste of the culinary opportunities offered by lamb. The trip included farm visits, a tour of Lancaster Auction Mart and a presentation on the role of fresh Quality Standard Mark lamb in top gastronomy. “The successful visit demonstrated the growing interest for quality standard lamb in Germany, while highlighting the pristine environment, animal welfare and rich heritage of Cumbrian sheep farming. Above all, our visitors were delighted with the great taste of the various lamb dishes prepared for them,” says Garnier.

“We are fast developing our export sales in Germany as a top priority market and will be attending four shows and events in the region between now and the end of January to further promote the use of high-quality lamb.”

At home, a clear picture is starting to materialise regarding the slump in consumption. Within lamb cuts, roasts and chops comprise the largest sectors, accounting for around 80% of category spend. With roasting joints showing the greatest volume decline of all cuts — down by 29% — and the highest average price increase, up over 20%, there is a clear correlation between cost and sales.

As analyst James Todd from Kantar Worldpanel explains, the reason is promotion. “Beef and pork employ more y for x volume promotions and they are quite reliant on three-for-£10 deals — more so than lamb,” he says. “If you look at lamb it’s much less reliant on mince than beef, for example, and obviously mince is much more conducive to volume-based promotions. Obviously roasting joints are particularly large and they are less conducive for price-based promotions.”

Garnier adds: “The export success is because people in many countries are happy to pay a little bit more than they are in the UK and the supermarkets in the UK are not really willing or able to push up prices, so the export price is more buoyant than the home market.”

Yet despite the slump, Todd does not believe we will ever see a situation where lamb becomes unavailable to the UK consumer. He says: “It has not fared particularly well recently, but if you look at the size of the market, it’s obviously a very substantial protein and, while the roasting occasion in total is suffering a slight decline, it is obviously one of the top 10 occasions, so I still think that it is a very large player.”

Industry research

Eblex is undertaking extensive testing on a number of lamb cuts, which it believes can add value to the carcase, and therefore the industry, and improve the consumer dining experience — both in and out of the home.

Retail project manager for Eblex Mike Whittemore explains: “There are a number of things we can do to help improve lamb’s position in the marketplace. Maximising the potential for the entire carcase makes lamb a far more cost-effective proposition when prices look set to remain high. In addition, through the development of new butchery techniques and products, we are aiming to reduce the amount of fat and waste from cuts — highlighted as an area of concern for consumers — while delivering exceptional flavour and tenderness.”

A number of cuts taken from the key sections of the carcase (short fore, loin, leg and chump and the breast) have been tested in a controlled kitchen environment by a panel of consumers and compared to control products for appearance, perceived value for money and propensity to purchase. This will be supported by further in-depth focus group work that will be undertaken to establish a more meaningful understanding of consumer views. The results will be fed back to industry later this summer, with the more successful cuts being rolled out to butchers as part of the autumn promotional kit.

Encouraging consumers

Eblex believes that a number of new consumer-focused campaigns will inspire consumers to cook with and enjoy lamb, as well as beef. Firstly, Eblex is backing a new TV programme ‘Matt and Allegra’s Big Farm’. Presented by ex-rugby player and TV presenter Matt Dawson and chef Allegra McEvedy, the series on UKTV’s Good Food Channel this autumn will follow the duo as they visit farms around Britain, creating easy-to-cook dishes using ingredients found at each location. The deal includes online sponsorship and Red Tractor beef and lamb branding and sponsorship messages.

Also, the ‘Big Curry Cook-in’, which launches in October, aims to target younger, less confident cooks. A definitive cooking guide, step-by-step videos and simple curry recipe ideas will encourage people to enjoy a ‘Big Curry Cook-in’ of their own. Also targeted at younger generation is the ‘Make it with Mince Young Chef Competition’. Led by celebrity chef James Martin, the competition is open to all key stage 3 and 4 pupils (aged 11-16 years) to give them hands-on cooking experience and demonstrate the ease of cooking with mince. Lamb has been a popular addition to the competition, now in its sixth year, claiming the winning recipe in 2010 (‘Moussaka Stuffed Aubergines Topped with Cheesy Soufflé Sauce’).

In addition to these campaigns, lamb cuts and recipes will be featured in Quality Standard and Red Tractor press activity and the autumn edition of Simply Beef and Lamb. This will be supported by on-pack promotions running over the autumn months in selected multiple retailers.

A regional future

As well as arming butchers with material and giving consumers ample reason to choose lamb this summer, Eblex continues to play a vital role in helping Quality Standard scheme members launch new regional branded lamb products onto the market. By providing advice on specifications and cut development work, the organisation is able to help scheme members develop product ranges that will maximise profitability and customer satisfaction.

Eblex has been closely involved with a number of companies establishing their own Quality Standard lamb brands in the market. Developing regional brands linked to the Quality Standard scheme can really make a difference and more and more members are benefiting from this.

Most recently, a special event saw the launch of a new brand from one catering butcher that showcased the impressive skill and high welfare practices behind the supply chain. A group of producers formed the regional Sheep Group, the key objective of which is to continually improve the flock through breeding, nutrition, health and welfare. The lamb is then selected to meet the strict criteria of the brand; based on age, size and fat covering, following which it is matured for a minimum of seven days, prior to being butchered to the chef’s specifications. Some of the country’s top chefs attended the day and endorsed the project’s ethos.

The regional project also has the backing of celebrity chef Brian Turner. “This is so much more than a quality regional lamb brand. It’s about the relationship that the project is fostering,” says Turner.

“Farmers, butchers and chefs — we all care passionately about the product at each stage of production, from the animal’s quality of life to how it is transported and handled at the abattoir and finally how it is cooked and presented to the customer.”

Hugh Judd, Eblex foodservice project manager, explains: “There is no shortage of quality lamb available to chefs through regional brands and this is where England is really bucking the trend. Lamb remains a firm favourite with the high-end catering trade, but consistency, flavour and quality are of the utmost importance, and this is where select regional brands are making a real impact.”

Chefs and caterers are also being advised on how to maximise their profit potential when it comes to lamb. Dedicated events such as a Quality Standard Lamb Masterclass on Tuesday 4 October at Stoke Park Country Club, held in conjunction with Chef magazine, will give caterers a chance to increase their understanding when it comes to specifying and buying quality lamb. Applicable to all sectors of the foodservice industry, the event covers aspects such as breeding and feeding techniques, with explanations on selection and specification of Quality Standard lamb provided by industry representatives.

A butchery masterclass will showcase the latest innovative and good value cuts. Places are available to reserve at www.eblextrade.co.uk.

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