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The mood among lamb finishers is becomingly increasingly downbeat, with renewed price pressure not helping.
Irish Country Meats and Dawn Ballyhaunis are not quoting for hoggets for tomorrow, while Kepak and Moyvalley have reduced quotes by 5c/kg, joining Kildare’s €4.60/kg base quote and Ballon’s all-in price of €4.60/kg.
Farmers continue to negotiate above this range, with quality assured hoggets trading from €4.70/kg to €4.75/kg.
Securing above this range is difficult, with the exception of producer groups or specialised finishers handling large numbers. Prices are also being influenced by the type of hoggets delivered, with less appetite from factories and agents purchasing in marts for very heavy hoggets.
Kildare Chilling has increased its official carcase weight limit to 22.5kg and advise that very heavy carcases will be deducted on price. This is adding to growing farmer frustration with ICM’s across-the-board clipping charge also in the spotlight. Finishers at Tuesday night’s IFA meeting in Bunclody said it removes any incentive to undertake practices to ensure lambs are delivered clean.
Kepak on the other hand are operating a batch clipping programme. Dirty hoggets in a batch will lead to the group being clipped, which is said to be helping presentation. Clean hoggets are not being charged.
IFA national sheep committee chair John Lynskey said: “Sheep farmers are getting very frustrated with the meat factories over their carry-on with the imposition of unfair clipping charges and their attempts to impose restrictive carcase weights.
“All sorts of moves are been made to put pressure on price, with farmers left very frustrated when they are told supplies are heavy and they see thousands of imports being brought into plants.”
Northern trade
Northern base quotes have increased 5p/kg to £3.70/kg (equivalent of €4.59/kg incl VAT) with last week’s move to pull back prices restricted by farmers refusing to move lambs at the lower quotes.
Regular sellers are securing £3.75/kg (€4.65/kg), with last week’s throughput recorded at 7,807, a fall of 1,095 head on the previous week. British prices have steadied also at £3.75/kg to £3.80/kg (€4.65/kg to €4.72/kg) on the back of tighter supplies in the live trade.
Price disparity
Looking back at the same period in 2016, there was much more life in the trade, with prices for the corresponding week moving to €5.40/kg to €5.50/kg. The kill, at 52,343 head is running 8,611 above the same week and processors add that supplies are also currently high in export markets which they say is adding greatly to trading difficulties.
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