364c/kg in sight for hoggets

By Peter Young

The term, 'singing from the same hymn sheet' appears to be the most apt for the export plants this week. After a jump in quotes by 12c/kg last week things slowed down this week and all the main export players all held quotes at 344c/kg (123). Since Friday they have been trying to toe the top line at 356c/kg (127).

However cracks have started to show. Newcomers Moyvalley are quoting 350c/kg (125) and farmers were bid 358c/kg (128) for sheep today (Thursday). Some deals of up to 364c/kg have been tied down by farmers for before the weekend.

In the marts the better butcher and factory hoggets are making well in excess of 370c/kg (132p/lb). The other sign that supplies are tight are that lambs with foreign tags are reported to be appearing in increasing numbers in more than one factory lairage.

Henry Burns, IFA sheep committee chairman, said that the reality is supplies are scarce. He said that factories will have no option but to lift prices in the coming weeks to get supplies.

Mervyn Sundeland, ICSA sheep committee Chairman, came out strongly against the factories. He said that the issue of competition in the market place will have to be addressed going forward if the sheep industry is to have a real future.

Fact finding

It's interesting to hear that representatives from the Sheep industry Development Strategy Group, including chairman John Malone, are on a factfinding tour in New Zealand at present. Farmers can only hope they also look closely at the relationship between factory and farmers there as well.

At the same time New Zealand is following the Irish trends carefully. Nick Beeby, Continental Europe Market Manager, Meat & Wool New Zealand contacted me to say that the actually figures for New Zealand quota is that they secured and additional 1,154 tonnes brings the New Zealand sheepmeat quota limit to 227,854 tonnes. In 2005 New Zealand filled 98% of their quota, or 222,361 tonnes. Good to see we have a worldwide reader appeal.

UK

In the UK the SQQ is steady at 103pstg/kg (338c/kg). Export plants are paying between 230-235pstg/kg (354-364c/kg incl. VAT) for the better quality lambs. Predictions for 2006 see the UK kill down 4% to 13,030 million head. The reduction is evenly spread across the four quarters.

France

Demand in France continues to be steady with Irish lambs selling at 375c/kg excl. VAT (393c/kg incl VAT. UK lambs are getting a touch more. The first of the French new season lambs are arriving on the market. Prices are a tantalising 420 to 450c/kg excl VAT. Spanish lambs are also expected to arrive in the South of France, nibbling at the overall market.

Cull ewes

Some factories increased their quotes to 145c/kg this week but up to 154 is being paid for good quality lots.

Northern Ireland

In Northern Ireland hogget quotes have improved with price up 5p to 235 p/kg (364c/kg incl VAT) at ABP, Foyle Meats and Linden Foods. Dungannon Meats were already at that price.

The fat ewe price in Dungannon is unchanged at 100 p/kg for 2L to 4Ls.

With a tighter supply, prices have picked up at the marts. The price for hoggets ranged from 203p to 240p halfweight.