The slight recovery in hogget prices has been eroded again, with hogget prices falling by 5c/kg to 10c/kg on last week’s level.

The two Irish Country Meats plants in Camolin and Navan have reduced their quotes by 5c/kg to a base of €5.90/kg plus their 20c/kg quality assurance (QA) bonus.

Kildare Chilling remains on a base of €6.00/kg plus 10c/kg QA, while Ballon Meats has also held its all-in quote of €6.20/kg.

The differential between quoted and paid prices has narrowed, with prices at the higher end of the market reducing by 8c/kg to 10c/kg.

Producers trading at the entry level to the market are typically receiving prices of €6.10/kg to €6.15/kg.

Sellers with greater negotiating power and groups are securing returns of €6.25/kg to €6.30/kg.

Reports indicate there are challenges in negotiating significantly higher prices.

Sellers handling large numbers and who were trading in the region of €6.50/kg in recent weeks have seen prices at the top end of the market pulled back to €6.35/kg to €6.40/kg.

Increased throughput

Factory efforts in pulling prices back have been helped by a four-day processing week and a significant increase in throughput last week.

Department of Agriculture records show 57,377 sheep were processed, which represents an increase of 6,664 head on the previous week.

This was driven primarily by extra hoggets, with the ewe and ram kill recorded at 6,686 head.

There is a continued wide variation between ewe quotes, which range from €3.00/kg to €3.30/kg following a 10c/kg reduction in Ballon Meats.

There is firm demand in mart sales for top-quality ewes and farmers should continue to weigh up the best market outlet and also explore paid weight limits, which range from 40kg to 46kg on average.

Quotes in factories in Northern Ireland have fallen by 20p/kg to a base of £5.10/kg, or the equivalent of €5.77/kg.

Regular sellers and groups are being offered 10p/kg to 15p/kg higher and reports indicate there is strong resistance to such a price fall, with some producers opting to delay marketing hoggets.

The price fall brings hogget prices back in line with British prices, with the latest Livestock Meat Commission market update showing prices paid last week in Northern Ireland averaging at £5.24/kg and running 18p/kg higher.

The number of sheep exported south for direct slaughter was recorded at 7,243, up over 1,500 head on the previous week.

The number of sheep exported to farms in Ireland has been averaging in the region of 3,000 head per week throughout January.

The latest price cuts are hitting confidence hard. Irish prices are now running 60c/kg to 70c/kg behind the corresponding week in 2022, or €13 to €16/head on a 22kg to 23kg carcase. Prices in Northern Ireland are running 40p/kg to 50p/kg lower year on year.