Lamb prices have collapsed in the last week with base quotes falling 35c/kg to 40c/kg. This translates to a reduction in factory prices of €7 to €8 on a 21kg carcase.

The fall has also been reflected in the mart trade, where prices have fallen anywhere from €7 to €12 per head with the heavy or butcher lamb trade also coming under significant pressure. The latest price cut leaves quotes 45c/kg to 50c/kg behind the same week in 2014 and in doing so is hitting farmer confidence hard.

Processors are blaming an increase in the weekly kill of 7,000 sheep, or a total of 61,110 head, and poor market demand as the reasons for a reduction in price. IFA National Sheep Committee chairman John Lynsky is criticising plants, saying they moved ahead of the drop in the market. He said French market prices for Grade 1 Irish lamb of €5.10/kg to €5.20/kg excluding VAT show factories moved too quickly and could have held prices above €5.00/kg.

Meanwhile, mart managers report keen interest for a small number of store lambs coming on offer. They point to lower cattle numbers and surplus fodder on some farms as attracting some beef farmers to consider purchasing lambs.