Factory hogget prices are steady, but unfortunately prices are not where finishers would have hoped in February. Prices paid for quality assured (QA) hoggets range from €4.70/kg to €4.75/kg for most producers. Some producer groups are being paid €4.80/kg for in-spec hoggets.

Deals being negotiated vary, with some factories paying a higher price, but only to a 22kg carcase weight, while others are increasing weight limits to 22.5kg and 23kg, but paying lower prices.

Moyvalley has the highest all-in quote of €4.70/kg. Of the main export plants, Kepak lead with a base quote of €4.60/kg (excluding bonuses), followed by ICM with a base of €4.50/kg.

Penalties are being imposed in some cases for very heavy hoggets. Some plants are working off a maximum price of €101 to €103 depending on how heavy hoggets are and agents are calling on farmers to continue to weigh and draft hoggets regularly.

Prices are not being helped by the higher kills this month. Last week, the total sheep kill was 15% ahead of the same period last year, at 49,643 head.

Both northern plants are quoting a base of £3.70/kg (equivalent of €4.57/kg incl VAT) for today, but most farmers are negotiating higher prices of £3.80/kg (€4.69/kg) for QA hoggets to 22kg. Prices as high as £3.85/kg (€4.75/kg) have been paid.

Northern lambs continue to come south for direct slaughter in big numbers, with 8,551 reported last week, similar to the previous three weeks, but behind 2016 levels.

French trade

The trade in France is reported as slow on the back of reduced demand and strong supplies. Reports point to an abundance of Lacaune and Spanish lambs in the south of the country, while strong UK supplies are reported in the north of France.

Retail promotions were very limited and only seen on domestically produced legs in one main retailer. Grade one Irish lamb was making around €4.83/kg DW (incl VAT) during the week.

IFA national sheep chair John Lynskey said the IFA met with French representatives from Interbev, together with Bord Bia, last week in Brussels and discussed the current market difficulties, as well as meeting with the EU Commission on proposals to increase EU promotional funding for lamb.

Solid ewe trade

Ewe quotes remain static at about €2.50/kg, but factory agent activity in the last week shows sellers with high numbers having greater negotiating power.

Prices of €2.60/kg to €2.75/kg have been reported and this is evident in heavy fleshed ewes selling in marts from €95 to €115.