Most factories have moved to pull base quotes this week by 10c/kg, but farmers are still securing prices similar to last week’s levels. Factories are blaming the passing of the Eid al-Adha festival causing a hangover of supplies, combined with a lack of demand on the continent and say this justifies the drop in quotes. Many farmers are resisting the drop and are hoping this dip in quotes will be shortlived, because supplies have tightened dramatically in just a week. Last week’s kill was 64,329, a significant decrease of 7,928 head on the previous week.

One factory agent said this week that there is usually a slump in demand for lamb in the period after the festival, but he expects prices to pick up again next week.

Even though base quotes have been moving down, many farmers have been securing stronger prices similar to last week. In the main farmers are securing €4.70/kg, with frequent sellers being paid €4.75/kg for a 22kg carcase. Members of producer groups are securing up to €4.85/kg for lambs.

Some mart managers have said slaughter-fit lambs entering sales have become tighter since Eid al-Adha passed and prices have remained firm for these lambs.

Ballon Meats is leading quotes this week with an all-in quote of €4.70/kg, followed by Moyvalley Meats on a quote of €4.65/kg. The larger exporter plants have all reduced quotes by 10c/kg, with Kepak Athleague on a base of €4.60/kg, and Kildare Chilling and both ICM plants on a base of €4.50/kg.

IFA National Sheep Committee chairman John Lynskey said there is strong farmer resistance to negative moves by the factories on price. “Farmers are taking a dim view of the way some factories are attempting to use increased Northern imports over local suppliers,” he said.

Northern Ireland

The reduction in the weekly kill is being greatly contributed to by lower imports from Northern Ireland.

The number of sheep imported for direct slaughter fell to 7,388 last week from a high of 11,406 in the week previous. NI sheep slaughtering remain high at 13,314 lambs.

Plants have pulled quotes by 5p/kg, with most plants quoting £3.10/kg or the equivalent of €4.42/kg including VAT.

The weekly lamb kill is running on a par to 2014, while ewe and ram throughput, at 842 head, is running 30% to 50% lower on a weekly basis, while year-to-date it is running 11,417 lower at 26,703 head.

Cull ewes

Plants are also trying to put pressure on the cull ewe trade, with some factories pulling quotes by 10c/kg. Currently, Ballon Meats tops quotes for today (Thursday) at €2.70/kg, while the remaining plants are quoting €2.40/kg to €2.50/kg.