The UK's sheep flock has been gradually declining. By 2023, there were approximately 14 million breeding ewes, marking a reduction in flock numbers​. This trend reflects a broader pattern of reduced livestock numbers, partly driven by environmental regulations, profitability concerns, and land-use changes​ due to the change in agricultural policies over recent years.

Sheep meat production is also declining, with total sheep slaughtering down to 11.8 million head in 2023​.

A reason for the decline may be shifting market conditions and stricter regulations which have prompted some farmers to move away from sheep farming or reduce the scale of their operations. These regulations often focus on reducing carbon emissions and land use pressures, pushing farmers to diversify or downsize. Additionally, fluctuations in lamb prices can influence how many sheep farmers keep.

Despite the reduced flock size, UK sheep meat exports have performed well. In 2023, the export value increased by 15% to £515 million, driven largely by strong demand from European markets​. This growth underscores the continued importance of exports to the industry.

While Brexit introduced new trade barriers with the EU, such as customs checks and potential tariffs, UK exporters have successfully navigated these challenges. The government and industry have worked to maintain strong trade ties with European partners through agreements and adaptations to new regulatory frameworks. This effort has paid off, allowing for the continued flow of sheep meat to Europe, albeit with more logistical hurdles than before.

Profitability remains modest for sheep farmers, with rising input costs, such as feed and labour costs, putting pressure on margins​. Additionally, post-Brexit trade complexities, disease outbreaks, and environmental policy shifts are impacting both domestic production and export opportunities​.