Stores strong - pressure in factories

Sheep trends by Peter Young

Continued pressure on factory prices has taken the edge off mart prices this week. However, the strong demand for store lambs continues unabated.

In the factories the quoted prices continue to slip. On Monday 375c/kg (134p/lb) was paid. Farmers got it hard to get 364c/kg (130p/lb) on Wednesday and export plants were quoting between 336 to 350c/kg (120 to 125p/lb) for Thursday.

Larry Fallon Chairman IFA sheep committee is hopeful that farmers can resist the pull that factories are exerting on prices. He believes that the lower numbers of finished lambs and strong store trade will keep a floor under price. Lambs continue to be more plentiful in the West than the East. When the two are combined there is still 20,000 less sheep been killed per week compared to the same week last year.

In France, Bord Bia report that the supermarket space afforded to lamb continues to shrink. They report that Irish prices in Rungis slumped to 340c/kg (excluding vat). Despite suffering one of its heaviest snowfalls in history, legs of New Zealand lamb are plentiful but are also proving difficult to move.

In the UK the news is no better. A flush of lambs in the first two days this week dropped the SQQ to 113.3p/kg. This is equivalent to 356c/kg including vat and if more lambs come out, the price is likely to come under further pressure.

In Kilkenny live lambs were bought for 160c/kg on Tuesday but live buying centres were talking about 150c/kg for the end of the week.

Light lambs

In Ballyhaunis light lambs (10-15kg carcase) are quoted at 350c/kg (125p/lb), 14c more than heavier French lambs. Finished hill lambs are being quoted a base of 336c/kg (120p/lb). Cast ewe prices are steady. Some factories did lift quotes this week and up to 140c/kg (50p/lb) was negotiated for larger lots.

Marts

In the marts numbers are rising and the trade isn't as sharp for finished lambs. It took a very good factory lamb to break €30 over this week. With grass still exploding over the ditches the demand for stores continues to be just as strong. Stores are making anywhere from €50 up to €80 a head for heavier lots as farmers are determined to turn ‘free grass' into something.

Breeding ewes

There are plenty of customers for breeding ewes, even without Northern Irish buyers. They are still excluded from venturing south for replacements for the third year running. In Tullow hogget ewes made anything from €98 to €141 and a few two year old ewes made up to €148 a head. In Enniscorthy the prices ranged from €90 to €140 a head and in Kilkenny breeding hoggets made €95 to €118 and older ewes made €70 to €95 a head.

In Miltown there were 1,200 lambs on offer. Light scotch lambs made €10 to €15 over and cross bred lambs made €20 over In the first sale in Maam Cross, horney wethers made €20 to €30 and cross bred lambs made €30 to €60 a head. Pedigree registers breeding rams are making from €300 to €500.