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Sustained upward movement in sheep prices is not reflected across the board in this week’s sheep quotes. Kildare Chilling continues to set the benchmark with its quote of €5.20/kg plus 10c/kg quality assurance (QA) bonus increasing 10c/kg on last week’s level.
Ballon Meats and Moyvalley Meats have also increased their quotes by 10c/kg to all-in prices of €5.20/kg, while Dawn Meats quote of €5.05/kg plus 10c/kg QA bonus represents a 5c/kg increase.
Kepak is unchanged with its base quote of €5.00/kg plus 15c/kg QA payment, while the two ICM plants remain on €4.95/kg plus 10c/kg.
A high percentage of QA lambs traded by individual sellers are moving from €5.20/kg to €5.30/kg. Producer groups in some cases are negotiating outside of their normal arrangement, which is based on an average of quotes across a number of plants plus a top-up payment. Their reasoning is that these prices are not rewarding producers for presenting lambs to tighter specifications.
Reports show prices secured from regular sellers ranging from €5.35/kg to €5.40/kg, with select deals completed 5c/kg higher. Plants are generally restricting carcase weight limits to 22.5kg. There are infrequent reports of 23kg carcase weight, but where the higher limit has been paid, the price has ranged on average from €5.25/kg to €5.30/kg.
Demand remains firm, with agents continuing to operate outside of their normal catchment areas in an attempt to bolster supplies. The strength in the trade is also reflected in the mart trade resuming by up to €8 to €10 higher than pre-Christmas levels.
Northern trade
Buyers purchasing on behalf of southern plants are also driving the trade in northern marts. In the region of 7,000 sheep were imported south for direct slaughter last week, with this week’s figure expected to be significantly higher. Northern plants have increased quotes by 15p/kg to 20p/kg to £4.20/kg. This equates to €4.95/kg at 84.8p to the euro and €5.22/kg including VAT at 5.4%. Regular sellers are securing returns rising to £4.30/kg (€5.35/kg incl VAT).
The trade in Britain also continues to strengthen on the back of tight supplies. The latest AHDB price report shows last week’s average lamb price increasing 12p/kg, with R grading lambs averaging £4.50/kg (€5.30/kg and €5.59/kg incl VAT). Reports show prices rising 5p/kg to 10p/kg higher on average this week with the price increase higher in cases. This upward movement is helping the competitiveness of Irish lamb in export markets.
The ewe trade is also slowly edging upwards, with quotes rising 10c/kg to €2.80/kg. Top prices were struggling to exceed €3.00/kg, but regular sellers are now pushing prices above this level.
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