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The recent positive performance in Irish sheepmeat markets is well documented, with sheep producers enjoying a relatively good year.
It is not just Irish sheep producers, however, who are benefiting from the supply-demand balance being in producers' favour – the sheepmeat trade across all EU countries is currently flourishing. The latest European Commission price dashboard shows EU prices for heavy lambs (>13kg carcase weight) at an average of €5.90/kg and running 12.9% above the corresponding period in 2019.
There are very significant increases in select countries. Prices are running at the highest level in France where for the week ending 7 November 2020 they were recorded at €7.00/kg. As reflected in Figure 1, this is an increase of 81c/kg on the corresponding week in 2019. The price increase has been driven by tight supplies and positive market performance, with the coronavirus pandemic driving a significant increase in retail sales, which is benefiting demand for lamb.
Prices are running 85c/kg ahead of 2019 levels in Spain at an average of €5.92/kg. The strong performance in Spanish prices is positive for Irish and UK exports, with Spanish sheepmeat exports being an important competitor in key export markets in recent years.
Northern Irish prices are also performing excellently in comparison to recent years, with prices 73c/kg higher. The differential in price to 2019 levels is higher than that in Britain with prices running 49c/kg higher.
Irish trade
The Irish trade has jumped in the last week and the latest increase of 20c/kg is not reflected in the prices detailed in Figure 1. The price of €4.97/kg does not include VAT of 5.4% which is payable to producers not registered for VAT. This brings the latest price reported to €5.24/kg, which is 65c/kg above 2019 levels.
Irish factories, wholesale providers and butchers remain very anxious for sheep. Prices at the top end of the market range from €5.50/kg to €5.60/kg, with select deals 5c/kg higher and allowances for carcase weight to 22.5kg. Prices paid to regular sellers range from €5.40/kg to €5.50/kg, with Kildare Chilling’s quote for Monday rising by another 10c/kg and leaving producers with quality assured lamb securing €5.50/kg without any negotiations.
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