Worst not over for sheep trade

By Peter Young

The worst does not appear to be over for the sheep trade just yet. After falling 50c/kg last week the price of spring lambs and hoggets continues to slide. On Monday hoggets were sold at 360c/kg and spring lambs got up to 455c/kg.

However as the week went on the factories pulled prices further, quoting 435c/kg for spring lambs on Thursday and as low as 335c/kg for hoggets. Even at these prices they were not even keen to take the numbers on offer.

The price collapse of 70c to 100/kg over the last 10 days and ripped the entire profitability out of spring lamb production this year and left hogget finishers badly burnt.

IFA National Sheep Committee Chairman Henry Burns said the factory cuts in spring lamb prices over the last week is calamitous for the sheep sector.

He said that farmers should not look at spring lamb production in the future without a solid price contract agreement.

Henry Burns said IFA is set to meet the factories on lamb and the market price collapse next Monday. In addition, IFA is organising meetings with the domestic supermarkets and has requested Bord Bia to bring forward their lamb promotion to next week. ICSA Sheep Chairman Mervyn Sunderland called the week's drop a disaster and called into question the processing and marketing of the sheep meat industry in Ireland.

France

The French market is in turmoil. A surplus of French lambs saw their prices drop to 400 to 420c/kg (excl VAT) and spanish lamb were on offer for even less. On Tuesday Bord Bia report Irish hogget were making 390 to 400c/kg excl VAT in France and new season lamb was making 450c to a top price of 480c/kg (excl VAT.).

UK

The situation is even worst in the UK where the hogget trade collapsed in the last few weeks. Hoggets under 42 kg, fit for export are getting 100-105pstg/kg liveweight but heavier hoggets are being cut right back to 55p/kg liveweight for 60kg plus hoggets This has left some producers selling below the purchase price. UK farmers have reacted by holding back nunbers.

The UK killed around 230,000 head last week but the kill could be well below 200,000 this week. Spring lamb in the UK is steady around 130pstg/kg but numbers remain small.

This time of year is always a delicate balance in the trade. Supermarkets who had expected scarcity had looked to New Zealand supplies which didn't help.

However hardened factory men admit that the market should stabilise in the weeks ahead.

The demand for spring lamb will increase and farmers should not be tempted to hold over fat lambs. The best option is just to go easy on the drafting in the next few week only moving very fit lambs form the growing flock.