Factories are ramping up efforts to secure additional supplies for next week’s kill. The Eid al-Adha festival which runs from Sunday 11 August to Thursday 15 August, has been responsible for recording the largest weekly kill in each of the last five years.

The 2018 kill was recorded at close to 80,000 head in the week preceding the festival, which took place two weeks later. Factories are playing down the prospects of this year’s trade repeating these volumes and are citing holidays, extreme heat in continental EU countries and stronger UK supplies as potentially having an effect.

ADVERTISEMENT

Much-needed boost

There is no doubt, however, that the trade will deliver a well-needed boost in demand. Processing and delivery is being complicated by next Monday’s holiday and as such factories are keen to secure supplies from today onwards.

Supplies are also tighter in some areas, with many farmers who usually feed opting not to in light of weaker prices.

Quotes for Thursday have reduced by 5-10c/kg on last week’s published quotes. Kildare Chilling is quoting a base of €4.60/kg, while Kepak has re-entered the quotes table with a base price of €4.55/kg.

The two Irish Country Meat plants are quoting a base of €4.50/kg, while Dawn Ballyhaunis is not quoting for lamb. Moyvalley meats meanwhile is quoting an all-in price of €4.80/kg.

Producers are securing prices ranging from €4.65/kg to €4.70/kg for quality assured lamb, with producer groups and sellers trading at the top of the market pushing returns to €4.80/kg and slightly higher in cases when bonus payments are included.

Imports from NI

The number of sheep imported from Northern Ireland last week for direct slaughter jumped by 3,768 head to reach 10,092 head.

This helped maintain last week’s kill recorded at 60,761 head at a similar level. The ewe and ram kill of 7,530 head was 2,310 head higher, with weather bringing ewes forward faster.

This is in contrast to the north, where the kill of 9,952 head was close to 1,000 head higher despite the higher exports, with some reports suggesting farmers are pushing sheep out faster in advance of Brexit.

Weakening sterling

Reports indicate buyers purchasing sheep on behalf of southern plants have been given licence to repeat and increase these volumes with a weakening in sterling strengthening their hand.

Plants in the north are reacting by increasing prices by 5c/kg. Base entry quotes average £3.70/kg, which is the equivalent of €4.04/kg at 91.6p to the euro and €4.26/kg when VAT is included.