Still pressure on the lamb price

Lamb price quotes fell again this week by another 6 to 10 cents a kg in the factories and about €5 ahead in the marts.

However, unlike last week when there were big supplies of excellent quality lambs, a tight supply between Monday and Wednesday of this week has lifted the prices paid to those who assemble lambs at live centres. The lift has been of the order of 12 cents a kg.

The drawback is that the French demand for imported lamb is flat and prices in the UK have taken a tumble over recent days. A surge in supply in the UK was not absorbed by the supermarkets who are slow to give lamb the increased shelf space normally allocated during the summer months.

As we went to press, Irish export plants quoted base prices from 364 to 375c/kg (130 to 134p/Ib) plus the usual bonus for grades and to producer groups. With supplies fairly tight there was some scope for deals. A couple that I encountered were at 386c/kg (138p/Ib) flat price.

In France, the price of imported lamb on the Rungis market slipped from 380c/kg (exc. vat) on Monday to 360c/kg on Wednesday, according to An Bord Bia. The UK too saw serious slippage in their SQQ to 114p/kg on Tuesday. This equates to an Irish price of 367c/kg including vat (131p/lb) - not a great background against which to get a price lift in Ireland.

However, there is some who think that the UK farmers will hold back stock to allow the price to recover. There too farmers are out in big numbers making hay and silage.

The price tumble when Irish lambs are at a peak in quality has angered farmers. IFA's Larry Fallon draws the attention of the export plants to the EU de-coupling talks and warns that a drop in lamb price now will trigger an exodus from sheep should the ewe premium be de-coupled. "There are no queues at lamb plants, there is no panic to give away sheep."

Francis Cusack chairman of the ICSA sheep committee asks why lamb prices should be allowed tumble in the middle of a major Bord Bia promotion in France.

What happens in the UK will hold the key to prices in Ireland over the coming months. John Thorley of the National Sheep Association predicts that UK lambs will come to market earlier this summer on the back of the good weather and that supplies will tighten earlier in the autumn. He expects live shipping to begin soon despite new EU rules on moving sheep across borders.

Currently lamb skins in the UK are making about €8 each while Irish plants report the price at about €7.

Marts

Generally lambs sold from €27 to €36 over the €/kg, back about €5 on the week. Factory lambs made €29 to €33 over.

In Athenry on Tuesday lambs were on 170c/kg carcaseweight but fell to 163/165 c/kg for Thursday. In Clonmel lambs were 160c/kg. In Birr 165c/kg and €29 for the heavier ones.

And after all that, lamb prices this week are still marginally better than this week last year.