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After weeks of stagnant prices, factories are very slowly beginning to loosen the purse strings and increase prices paid for hoggets.
Earlier this week, factory agents were trying to source hoggets at €4.70/kg, but as the week progressed, prices of €4.75/kg and higher are more frequent to a weight limit of 22.5kg.
Producer groups are securing prices of €4.80/kg to €4.90/kg when haulage is included in deals.
Weight has a big bearing on price and factories are really on the lookout for in-spec lots that do not exceed their weight limits. Hoggets that do breach the weight limit are being subjected to price penalties.
Many farmers are making the point that weight penalties and clipping charges are being imposed without adequate prior warning.
Some farmers feel that using the carrot over the stick approach would be a far more fair and practical way for factories to source the specification of hogget they require via price premiums with a lead-in time.
Factory base quotes are more positive this week. Irish Country Meats has increased its base quote by 10c/kg to a base of €4.60/kg (excluding bonuses).
Kildare Chilling has quoted a base of €4.60/kg also after failing to quote last week and Kepak has held its quote at a base of €4.60/kg.
After a meeting with Meat Industry Ireland, IFA president Joe Healy said hogget finishers are extremely frustrated with the loss-making prices on offer from the meat plants, which are down 65c/kg or €15/head on this time last year. He said, in some instances, with weight cuts, the losses are as high as €20/lamb.
France
Declan Fennel from Bord Bia said the lamb market is poor in France this week. He said there is a lack of demand and consumption levels are very low. This is due in part to the French school holidays this week.
He said the south of France remains dominated by French Lacaune lambs. French lambs are quoted to be trading around €5.00/kg. Prices for UK and Irish number ones are between €4.50/kg to €4.60/kg and number twos are quoted as low as €4.00/kg.
NI
The number of sheep coming south for direct slaughter has reduced in recent weeks with higher numbers available in the south. There were 7,605 sheep imported south last week, 946 lower than the previous week. Year-to-date imports are running over 10,000 less than the same period in 2016. Official quotes range from £3.70/kg to £3.75/kg to 22kg carcase weight, with top prices of £3.80/kg reported.
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