As hogget numbers begin to dry up, Irish processors should see an opportunity to put themselves in the driving seat over UK rivals on the new season lamb market.

Irish processors will have an advantage over their UK competitors, who begin production at a much later date.

IFA sheep chair John Lynskey said factories must use this opportunity in a positive way and avoid their usual exaggerated and damaging price cuts at this critical time of year.

As a result of the poor price farmers received for early Easter lamb this year, farmers will only be able to consider this option in the future if they have a fixed price contract with a processor, which returns a viable price.

“The poor farmer price contrasts dramatically with some of the high retail prices on display for spring lamb over the Easter,” he said, adding that retail prices of €35/kg for lamb rack and €24/kg for lamb leg were totally inflated.

“Some new season lamb legs were offered at €70 each at retail level, when farmers were being offered only €110 to €120 for the entire lamb,” Lynskey added.

Sterling rate

The sterling exchange rate this week dropped from 86 to 84p against the euro – a significant change, as the last reported price for hoggets in the UK was £4.17/kg, equating to a price of €5.23/kg including VAT.

Lynskey added that: “It is clear at this price level there is little basis in the argument that UK lamb is undercutting Irish lamb in France.”

The Easter trade for lamb proved to be disappointing in France this year. The wholesale price of lamb declined 14%, while the import price was 6% lower.

Hoggets were making from €5.10 to €5.20/kg up to 23kgs, while spring lamb prices of €6.20/kg were on offer. Ewes are making €3.00/kg, the sheep chair said.

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