FALLING lamb prices, drastically reduced farm incomes and frustrations over the volume of imported lamb on supermarket shelves means farmer anger is reaching boiling point.

And the issue was set to become one of the main talking points as all sectors of the industry gathered at the Royal Welsh Show.

Marts around Wales have seen falling prices - £25 to £30 a head lower than last year - with sellers staying away in the hope of better things to come.

“Lamb prices have fallen drastically over recent weeks, with prices down by around 20 per cent compared with the same period last year,” said FUW livestock, wool and marts committee chairman Dafydd Roberts.

“Such falls come against a background of predicted falls in net hill and lowland livestock farm incomes of 41 and 24 percent.”

Mr Roberts said the volumes of imported lamb, which continue to appear on supermarket shelves, added insult to injury for farmers who had seen a fall in liveweight new season lamb prices of around 35p/Kg during June.

“The FUW has highlighted the need for an increase in farmgate prices for all commodities during meetings with supermarkets over recent months, and the current plight of the industry was reiterated in a meeting with deputy minister Rebecca Evans.

“We will continue to draw attention to the need for fair farmgate returns in meetings with bodies involved in the supply chain during the Royal Welsh show,” he added.

The concerns led to a wide package of measures to encourage shoppers to choose Welsh Lamb being launched by Hybu Cig Cymru – Meat Promotion Wales in the run-up to the show.

“The 2015 Welsh Lamb campaign will roll out in two stages,” said HCC’s market development manager Laura Pickup. “The summer campaign will start in July with a range of initiatives followed seamlessly by our autumn campaign which will further promote the brand into November.

“This is in addition to our year-round awareness campaign highlighting the provenance and quality of Welsh Lamb.”

The campaign includes:

• A summer promotion focusing on the versatility of Welsh Lamb for barbecues, tying in with summer festivals and general outdoor eating;

• Large posters strategically placed in 150 locations near major supermarkets in towns and cities across Britain;

• Digital advertising targeted at specific audiences and geographical areas;

• A new television advertisement;

• On-pack promotions; including a competition offering a major prize;

• An autumn promotion focussing on warmer recipes for longer nights;

• Working with supermarkets and High Street independents to create more shelf space for Welsh Lamb.

Latest figures show that while the retail price of lamb for consumers is lower in the spring of 2015, compared to the spring of 2014, it has not fallen anywhere near as much as the farmer’s share of that retail price which has dropped from 60 per cent to 50 per cent over the past year.

Speaking following a meeting of the NFU Cymru Livestock Board, Lyndon Edwards, said, “Lower retail prices would help bolster demand for lamb, but consumers aren’t seeing as much of a drop in price as farmers are, which begs the question – who is profiting from lamb?

“Our farmgate price of lamb is reaching critically low levels. Whilst we recognise that trading conditions are tough, as the strength of sterling and the Eurozone crisis impacts negatively on our export markets, we are galled to see that whilst the price we are receiving for our lambs has slumped that this price crash is not being reflected in the price on the shelves.”