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It proved to be another difficult week for farmers selling lambs in the factories, with prices paid reduced on average 5c/kg. Most farmers are being paid €4.60/kg to €4.65/kg including bonuses for their lambs, with prices of €4.70/kg more difficult to come by.
Farmers with good numbers of quality assured (QA) lambs are more likely to negotiate a price at the higher end of the range.
Quotes weakened in some factories this week. Irish Country Meats cut its base price by 10c/kg to €4.30/kg, excluding bonus payments, and Kildare Chilling refrained from quoting for lambs.
Kepak remains unchanged with its quote of €4.45/kg, excluding bonuses. Moyvalley Meats has an all-in quote of €4.60/kg and Ballon Meats did not quote for lambs.
The export plants are all pointing to sterling for the dampened trade over the past three to four weeks. “It is very difficult to compete with UK lamb in France that is being sold at €4.40/kg to €4.50/kg,” according to one agent.
The one positive for farmers selling lambs now is that there may be some signs of reduced domestic supplies. The total kill last week was down 2,345 head on the week previous to 58,395.
Lamb numbers have actually been down the last number of weeks. The latest recorded weekly lamb kill was 47,280 head, down 2,603 head on the same period last year.
IFA national sheep committee chair John Lynskey said factories are paying €4.65/kg to a top of €4.70/kg. He said in some cases weight has moved to 23kg. Ewes were making up to €2.45/kg.
Cull ewes
Some farmers report a slight improvement in prices for cull ewes, with €2.40/kg to €2.45/kg being paid, in response to firm demand. The number of cull ewes being presented for sale has been exceptionally strong over the past few weeks and this has affected prices negatively. The total ewe and ram kill hit 10,926 head last week, up 3,359 on the corresponding period last year. Ballon Meats led with an all-in quote of €2.40/kg for ewes. Quotes from the main export plants range from €2.20/kg to €2.30/kg.
Higher NI imports
Imports of sheep for direct slaughter increased 600 head to 10,009 last week. This increase in exports had a knock-on effect on the northern kill, with throughput reducing from 11,047 sheep to 10,229. British prices have eased, but competition from southern buyers is helping to keep a floor under northern prices, with quotes steady at £3.75/kg to £3.80/kg (equivalent of €4.42/kg to €4.48/kg including VAT at 89p to the euro), although one plant is said to be moving to quote £3.70/kg.
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