Farmers continue to secure prices of €5.00/kg to €5.10/kg for lambs including bonuses, with average prices from €4.90/kg to €5.00/kg. Factories are attempting to test farmer resolve and price expectation by pulling base quotes. Reductions in base quotes range from 15c to 20c/kg.
The supply of finished lambs over the coming weeks will be one of the key components if they will be successful in their attempts. Up to now, the supply has been very strong.
The total sheep kill was very high last week, hitting 78,428 head, up 16,802 on the same period last year. The kill included 68,300 lambs.
The big increase in numbers killed coincided with the greater demand brought about by the Eid al-Adha festival, which is taking place this week.
Last year, the festival started on 1 September.
In the leadup to the festival last year, numbers peaked at 72,889 head, so throughput has been higher this year.
Factory agents have commented that numbers have been strong this week, but believe the peak in supply has passed.
Now that the festival has almost passed, factories are attempting to pull back prices paid to farmers.
A similar strategy was taken last year, but the gap between base quotes and prices paid widened.
Farmers have been focused on supplying lambs for the festival and many believe supply of fleshed lambs may come under pressure in the coming weeks. This may undermine factories’ attempts to pull back prices paid to farmers.
All the major export plants have pulled back their quotes this week.
Irish Country Meats is sitting at the bottom of the price table, with its quote of €4.70/kg excluding bonuses – a reduction of 20c/kg on last week’s quotes.
Both Kepak Athleague and Kildare Chilling are quoting €4.80/kg excluding bonuses. These quotes equate to reductions of 20c/kg and 15c/kg respectively.
IFA national sheep committee chair Sean Dennehy said farmers need to stand firm on the price and resist any attempt to undermine what has been a very stable year price-wise so far.
Cull ewe
Up to now, factories were focusing all their attention on lambs, but this will likely change now.
Quotes remain low, ranging from €2.60/kg to €2.80/kg, but agents have been actively looking for fleshed ewes this week. Prices paid range from €2.80/kg to €2.90/kg.
Northern Ireland
In the North, quotes for lambs have also reduced. Plants are now quoting £3.90/kg to £3.95/kg (equivalent of €4.56/kg to €4.61/kg including VAT).
Read more
Sheepwatch: prices steady for factory fit lambs
Northern view: plants offer improved prices on heifers
Farmers continue to secure prices of €5.00/kg to €5.10/kg for lambs including bonuses, with average prices from €4.90/kg to €5.00/kg. Factories are attempting to test farmer resolve and price expectation by pulling base quotes. Reductions in base quotes range from 15c to 20c/kg.
The supply of finished lambs over the coming weeks will be one of the key components if they will be successful in their attempts. Up to now, the supply has been very strong.
The total sheep kill was very high last week, hitting 78,428 head, up 16,802 on the same period last year. The kill included 68,300 lambs.
The big increase in numbers killed coincided with the greater demand brought about by the Eid al-Adha festival, which is taking place this week.
Last year, the festival started on 1 September.
In the leadup to the festival last year, numbers peaked at 72,889 head, so throughput has been higher this year.
Factory agents have commented that numbers have been strong this week, but believe the peak in supply has passed.
Now that the festival has almost passed, factories are attempting to pull back prices paid to farmers.
A similar strategy was taken last year, but the gap between base quotes and prices paid widened.
Farmers have been focused on supplying lambs for the festival and many believe supply of fleshed lambs may come under pressure in the coming weeks. This may undermine factories’ attempts to pull back prices paid to farmers.
All the major export plants have pulled back their quotes this week.
Irish Country Meats is sitting at the bottom of the price table, with its quote of €4.70/kg excluding bonuses – a reduction of 20c/kg on last week’s quotes.
Both Kepak Athleague and Kildare Chilling are quoting €4.80/kg excluding bonuses. These quotes equate to reductions of 20c/kg and 15c/kg respectively.
IFA national sheep committee chair Sean Dennehy said farmers need to stand firm on the price and resist any attempt to undermine what has been a very stable year price-wise so far.
Cull ewe
Up to now, factories were focusing all their attention on lambs, but this will likely change now.
Quotes remain low, ranging from €2.60/kg to €2.80/kg, but agents have been actively looking for fleshed ewes this week. Prices paid range from €2.80/kg to €2.90/kg.
Northern Ireland
In the North, quotes for lambs have also reduced. Plants are now quoting £3.90/kg to £3.95/kg (equivalent of €4.56/kg to €4.61/kg including VAT).
Read more
Sheepwatch: prices steady for factory fit lambs
Northern view: plants offer improved prices on heifers
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