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.
SHARING OPTIONS: