The price of British lamb has seen a sharp increase amid rising demand, paired with challenging weather conditions and import issues.

According the Agriculture and Horticulture Development Board, wholesale prices have risen by more than 40% year-on-year to over £8.50 per kg, while lamb production in the UK is expected to decline by 1.4%.

In recent months, British farming has seen exceptional rainfall and storms which have impacted the livestock, arable and horticultural sectors.

It also comes at the same time demand in the UK has risen, up 8% in the past three months, following celebrations such as Easter and Eid, The Guardian reported.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

The rising price in the UK comes at the same time lamb in New Zealand, the main rival to British lamb, has fallen by around a fifth year on year to less than £3 per kg.

As a result, Morrisons has dropped its pledge to only source British lamb as part of a new trial this week to begin selling New Zealand lamb in 39 stores.

A Morrisons spokesperson told Grocery Gazette that the trial follows an “extensive exercise listening to customers who were very clear that they want us to sell lamb at a more accessible price all year round.”

“The blunt commercial reality is that New Zealand lamb is cheaper to source, and therefore cheaper to sell, than British lamb,” they added.

Industry experts told The Guardian that other retailers are likely to be under pressure to switch to cheaper lamb alternatives, however Waitrose, The Co-op and M&S all said they had no intentions to backtrack on their 100% British lamb pledges.