Farmers are resisting any further attempts by factories to pull back lamb prices. Since last week’s falls, official quotes have fallen by a further 20c/kg in many plants.

However, these latest falls have not been accepted by farmers and higher prices are being negotiated. Farmers this week are securing €5.85/kg to €5.95/kg for quality assured lambs, including bonuses. Prices of €5.90/kg are common, while some producer groups and frequent sellers are securing higher prices of €6.00/kg.

These prices were better than anticipated given the significant reduction in factory quotes over the last two weeks.

Earlier in the week, factories paid prices of €5.80/kg, but as the week progressed, they were forced to dig deeper to secure numbers.

Last week, the spring lamb kill was 44,850 head, down 3,551 on the same period last year. Hogget numbers on the other hand were strong at 8,019 head last week, but supplies are declining fast, with spring lambs slow to make up the shortfall. Hoggets are making €5.10/kg to €5.20/kg.

Of the main export plants, Kepak is leading the quotes this week with a price of €5.80/kg, excluding bonuses. This is followed by Kildare Chilling and Dawn Meats, who are at a base of €5.75/kg. Irish Country Meats has the lowest quote of €5.60/kg, excluding bonuses.

Prices for lambs in the UK are strong at £5.04/kg, the equivalent of €6.08/kg including VAT. Volumes of lamb exported from New Zealand to the UK are down significantly year on year. The reduction in supply is boosting demand for Irish lamb and helping to underpin Irish prices.

IFA national sheep chair John Lynskey said producers are resisting the negative factory price pressure, with supplies tighter than anticipated.

There was no major change in cull ewe prices. Quotes continue to range from €2.50/kg to €2.70/kg. In general, farmers are securing prices of €2.60/kg to €2.80/kg for larger numbers.

Northern Ireland

There has been a significant rise in the number of sheep killed so far this year in the north, with 136,106 head slaughtered, an increase of 15% compared with the same period in 2016.

Southern factory agents have been very active in the north sourcing lambs for direct slaughter for their plants in the Republic. Last week, there was 5,775 head exported south to help increase throughput.

Northern quotes are back to a base of £4.60/kg to £4.70/kg (€5.55/kg to €5.67/kg including VAT), but agents are paying higher prices to secure numbers. Prices of £4.65/kg to £4.75/kg (equivalent of €5.61/kg to €5.73/kg including VAT) were paid.

Read more

Lamb rices hold despite factory cuts