Sheep producers are being hit hard this week, with factories implementing severe price cuts.

Spring lamb quotes for Thursday have fallen anywhere from 20c/kg to 60c/kg on last week’s levels.

Kepak’s base quote of €5.80/kg is a 20c/kg cut on last week, while Kildare Chilling’s base quote of €5.70/kg represents a 60c/kg fall.

ICM’s quote of €5.60/kg is down 40c/kg in the week, while Moyvalley is quoting €5.60/kg.

The variance in quotes is also leading to a significant variation in prices paid, with returns varying from €5.70/kg to €5.90 or €5.95/kg at the higher end of the market.

Factories cite strong supplies of spring lambs and poor demand as undermining the trade.

Producers, on the other hand are left angry that each year factories bemoan not having a sufficient supply of spring lamb early in the season and now cannot handle numbers coming on stream.

The collapse in the trade also raises the importance of Minister Creed building on positive developments on market access to China during this week’s trade mission, with Australian and New Zealand farmers securing record returns from the market.

Highlighting returns running €20 to €23 behind the corresponding period in 2018, IFA sheep chair Sean Dennehy said: “The IFA sheep committee members are organising meetings with the major lamb factories to highlight the impact of excessive price cuts on farm incomes.

“It is an absolute scandal [that] factories are paying more for old cull ewes than new-season spring lamb,” he said.

Weight continues to be an issue, with all plants highlighting that quotes are for a 20kg carcase weight.

Some comment that average carcase weights for spring lambs are running over 1kg higher, with significant numbers killing overweight.

A similar story is being told for hoggets, with factories implementing cuts to varying degrees for lots weighing over 23kg.

Producers comment that they are already facing heavy cuts, with prices easing 20c/kg to 50c/kg.

Quotes range from €4.50/kg to €4.70/kg, with top returns reported in the region of €5.00/kg for hoggets meeting desired carcase weights.

Plants in Northern Ireland are not quoting, with processing activity reduced due to Balmoral Show.

The number of sheep imported south for direct slaughter last week was 4,265, a reduction of 1,389 on the previous week.

This was not surprising given last week’s kill reduced 6,322 head to 50,485, which was similar to throughput for the corresponding week in 2018.

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Sheep Watch: factories inflict €7 to €10 price cuts