Home trade drives spring lamb price

Sheep trends by Peter Young

Spring lambs made the equivalent of €6 a kg carcase in some marts this week as the home trade continues to drive prices. Factories are quoting between 532 to 546 c/kg but are paying over 560c/kg in some cases. However when the cheque comes back, it's falling short of the €120 plus a head the top lambs are getting in the marts. However even these prices are overshadowed by the UK, where new season lamb took another huge jump. The SQQ for new season lamb hit 181pstg/kg on Tuesday. With sterling hardening slightly this works out equivalent to 611c/kg. At this stage the home UK market is taking the majority of their spring lambs.

In France Bord Bia report that Irish Spring lamb is making up to 584c/kg incl. vat. The fact that French farmers are only getting 534c/kg incl. vat shows there is scope for our quality imported product.

With the home market expected to account for 35% of lamb sales this year, Bord Bia started to roll out its 2004 Irish lamb promotion campaign. TV adverts will be complemented by in-store merchandising throughout May and June. Promotions in France will start up towards the end of June.

Hoggets

IFA National Sheep Committee Chairman Laurence Fallon said this week, scarce spring lamb supplies were strongly driving prices with over 560c/kg widely available. He added that the hogget trade has also bounced back strongly and despite strong attempts by the factories to take down prices, they have had to pay 433c/kg to get supplies this week. In the UK scarcity of hoggets saw the SQQ lift to 140.73pstg/kg which is equivalent to 474c/kg incl. vat. Retention period ends in the North this Friday but huge numbers are not expected to come out.

Marts

Tullow mart have started buying live, offering €68 along with the €1/kg.

In Roscommon yesterday (Wednesday) spring lambs made from €105 to €125 a head and hoggets made from €60 to €95 a head.

In Athenry spring lambs made €62 to €92 over and hoggets made €30 to €47 over. Spring lambs in Bandon made €65 to €77 over and in Enniscorthy they made €62 to €75 over. Brood ewes were also up making from €88 to €190 for young ewes with twin lambs at foot in Enniscorthy.

Groups

Lamb producer groups are starting to tie down their deals for the season. Last year the groups found it difficult to negotiate. However with the prospect of lower sheep numbers and a few more processors looking to increase their kill, there is plenty of courting going on behind the scenes.