Weekly lamb contract for farmers

Lamb prices have fallen after the foot-and-mouth outbreak

A group of farmers in mid and south west Wales has won a contract to supply a supermarket chain in Wales with lamb.

Cambrian Mountain Lamb is supplying 350 sheep a week to Co-Operative supermarkets from farms in Carmarthenshire, Ceredigion and Powys.

It won the contract after the EU banned UK meat exports in the wake of the summer's foot-and-mouth outbreak.

The ban has forced down prices and farmers are going out of business, the National Farmers' Union (NFU) said.

The EU export restrictions have been relaxed, but lamb prices have plummeted because of the glut of sheep on the domestic market, added the union.

Owain Pugh, who farms in Rhayader, Powys, welcomed the supply contract.

I don't think the sheep sector has ever seen it so bad Dai Davies, NFU

"After the outbreak of foot-and-mouth lamb prices plummeted, and anything like this helps during a bad year," he explained.

"I feel the Co-Op has been very cooperative and it's quite possible we'll be able to work with them again next year."

Mr Pugh added that last year he was receiving about £32 per lamb at market, but since foot-and-mouth it had fallen to about £23.

"My father was getting £1.07 per kilo (£32 per lamb) back in 1981, when diesel was 6p a litre and feed was lower" he said.

Dai Davies, chairman of the National Farmers' Union in Wales, said times were hard for other farmers.

"I don't think the sheep sector has ever seen it so bad," he added.

Eirwen Williams, of business advice agency Menter a Busnes, brought Cambrian Mountain Lamb together.

"I can't say how much the farmers are receiving for their lambs, but it's more that the current market price," said Aberystwyth-based Mrs Williams.