Ewe prices soar as tight supplies spark market surge

By Peter Young

The sheep trade has moved up another notch this week, driven by tighter supplies across the country.

Good quality ewes got the biggest jump. In the marts some made over €80 a head as factories competed against each other. In the export factories, Kildare was again the most competitive, giving 205c/kg and even more in some cases. These prices were topped by Carna meats who paid 230c/kg for good quality ewes and appeared fit to give in more to get what they wanted. With no weight limit, good cull ewes came into €90 a head in some deals.

Hoggets moved to within striking distance of 450c/kg. Factories raised their quotes to a base of 410-415c/kg. In the East, factories were trying to hold hogget prices at 425 c/kg earlier in the week but paid a top of 430c/kg to most farmers. In the West, tighter numbers forced factories to bid higher, with Ballyhaunis reported to have paid 440c/kg for today (Thursday) to get what they require. With numbers tightening, it is inevitable that 450c/kg will be reached and some predict it will go further.

IFA National Sheep Committee Chairman Henry Burns said lamb prices are continuing to rise, driven by strong domestic demand and scarce supplies. He said hogget prices at the factories have moved up to 440-450c/kg. In Northern Ireland, tight hogget numbers forced Linden Foods to lift their quote by 10% to 330pstg/kg or 441c/kg incl VAT. The other factories in the North are quoting 220-225pstg/kg.

450c/kg has already been passed in Britain. The market increased further this week with export plants having to pay up to 340pstg/kg. This is equivalent to 454c/kg, a figure that will not be lost on Irish finishers.

Spring lamb

The pre-Easter panic buying in the British spring lamb trade has eased. However, with numbers low and bad weather slowing supplies, British producers are still getting 480pstg/kg in some areas. This is equivalent to 641c/kg incl VAT. Some spring lambs in Ireland reached these levels in the marts. In Kilkenny mart, Ballon meats were reported to be very active buyers for the small numbers on offer. This helped drive the price to over €130 a head. That's over 650c/kg for a 19kg carcase spring lamb.

In the factories, spring lamb quotes have moved up to 565c/kg and farmers are getting at least 580c/kg for the best lambs. In the North, Linden and Dunbia have stuck on 400pstg or 535c/kg incl VAT, leaving them well behind Southern prices.

France

In France, 490c/kg to 500c/kg excl VAT is being quoted for the small amount of Irish lamb making its way over. The expected deluge of New Zealand chilled legs was delayed just before Easter. This led to a glut on supermarket shelves that had to be shifted quickly. This had a slight impact on product from other countries.

Hogget kill

The high hogget kill continues to amaze. The figures for the week before St Patrick's Day showed that 45,531 sheep were killed, 11% up on the same week last year. With numbers tightening, we should see a swing the other way in the weeks ahead, putting more pressure on price.