Lamb prices have come under pressure due to increased supplies entering processors’ gates. Up until recently, farmers held a reasonably strong bargaining position because numbers of fleshed lambs were in tighter supply than factories would have liked. However, more lambs coming on stream has meant prices paid have reduced by 5c/kg on average.
Most farmers are securing €4.60/kg to €4.65/kg including bonuses for their lambs. Some farmers with good quantities of quality assured (QA) lambs have been paid as high as €4.70/kg. Producer groups were paid €4.75/kg at the top end for U grade QA lambs.
The total kill last week was 60,740 head, up 3,526 head on the same period last year. The ewe and ram kill made up the majority of the increased total kill, with numbers up 3,510 head on the same period last year, while lamb numbers are more or less on par with last year’s figures.
Farmers seem to be culling more ewes from their breeding flocks this year and this has been reflected in higher kills due to lower prices for replacement breeding sheep in most mart sales.
On the ground this week, farmers have suggested that lambs are being offloaded now to allocate grass supplies solely for breeding ewes.
This increased supply should be short-term and farmers are hoping numbers will contract again, encouraging factory agents to dig deeper for fleshed quality lambs.
IFA national sheep chair John Lynskey said factories are paying €4.70/kg this week for lambs with top prices of €4.80/kg paid. He said with farmers having received their BPS and ANC payments, this should provide a boost for the store lamb trade.
Factories continue to blame the weakening sterling for reduced prices.
“Rungis in France is choked with UK lamb and we cannot compete” claimed one factory agent.
The closer sterling comes to parity with the euro (currently €1 = £0.89) the more attractive UK lambs become for perspective French buyers.
However, as we mentioned here last week, the French sheep flock remains in decline (breeding flock down 2% in 2015), but slaughterings increased 5% from January to July, which could suggest a forecasted reduction in French lamb supplies.
NI prices
Northern prices are steady, with quotes at £3.80/kg. At an exchange rate of 90p:€1, this equates to €4.43/kg including VAT. Regular sellers trading at the top of the market are securing 5p/kg to 10p/kg above quotes. Northern lambs continue to be a good prospect for southern plants, with 9,412 sheep imported south for direct slaughter last week.
Read more
Improved store trade at marts
Slower sale at Tuam but demand solid for breeding types
Lamb prices have come under pressure due to increased supplies entering processors’ gates. Up until recently, farmers held a reasonably strong bargaining position because numbers of fleshed lambs were in tighter supply than factories would have liked. However, more lambs coming on stream has meant prices paid have reduced by 5c/kg on average.
Most farmers are securing €4.60/kg to €4.65/kg including bonuses for their lambs. Some farmers with good quantities of quality assured (QA) lambs have been paid as high as €4.70/kg. Producer groups were paid €4.75/kg at the top end for U grade QA lambs.
The total kill last week was 60,740 head, up 3,526 head on the same period last year. The ewe and ram kill made up the majority of the increased total kill, with numbers up 3,510 head on the same period last year, while lamb numbers are more or less on par with last year’s figures.
Farmers seem to be culling more ewes from their breeding flocks this year and this has been reflected in higher kills due to lower prices for replacement breeding sheep in most mart sales.
On the ground this week, farmers have suggested that lambs are being offloaded now to allocate grass supplies solely for breeding ewes.
This increased supply should be short-term and farmers are hoping numbers will contract again, encouraging factory agents to dig deeper for fleshed quality lambs.
IFA national sheep chair John Lynskey said factories are paying €4.70/kg this week for lambs with top prices of €4.80/kg paid. He said with farmers having received their BPS and ANC payments, this should provide a boost for the store lamb trade.
Factories continue to blame the weakening sterling for reduced prices.
“Rungis in France is choked with UK lamb and we cannot compete” claimed one factory agent.
The closer sterling comes to parity with the euro (currently €1 = £0.89) the more attractive UK lambs become for perspective French buyers.
However, as we mentioned here last week, the French sheep flock remains in decline (breeding flock down 2% in 2015), but slaughterings increased 5% from January to July, which could suggest a forecasted reduction in French lamb supplies.
NI prices
Northern prices are steady, with quotes at £3.80/kg. At an exchange rate of 90p:€1, this equates to €4.43/kg including VAT. Regular sellers trading at the top of the market are securing 5p/kg to 10p/kg above quotes. Northern lambs continue to be a good prospect for southern plants, with 9,412 sheep imported south for direct slaughter last week.
Read more
Improved store trade at marts
Slower sale at Tuam but demand solid for breeding types
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