Short-term improvement in exchange rates could offer better export opportunities for the UK farming industry.
The pound has weakened against the euro in recent days, moving from about €1.42 to €1.38 by Tuesday (December 8) amid continuing uncertainty over the extent of European Central Bank moves to improve the EU economy.
Jeremy Cook, chief economist at international payments company World First, said: “The key thing for sterling in 2016 is clarification about the EU referendum. The markets will start pricing in some risk.”
Charles Sercombe, livestock board chairman at the NFU, said the weaker pound was aiding UK farm prices.
He said: “The weakening of the pound does seem to have coincided with an uplift in lamb prices. In the long-term, it is evident the strength of the pound does have an impact on our ability to export red meat.”