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This week’s lamb throughput is expected to be above normal levels for the time of year following the resumption of processing in Kepak Athleague and Dawn Ballyhaunis.
Both plants are actively working through a significant backlog and, as such, are not quoting for sheep for Thursday.
Quotes remain unchanged elsewhere, with Kildare Chilling remaining top of the quotes table with its base of €4.55/kg and 10c/kg quality assurance (QA) bonus.
The two ICM plants in Navan and Camolin are offering a base of €4.50/kg and 10c/kg QA, while Ballon Meats and Moyvalley Meats remain on all-in quotes of €4.50/kg.
With the variance in quotes offered, prices paid to individual sellers vary. Prices reported for QA lamb range in general from €4.55/kg to €4.65/kg, with top prices paid to producer groups and sellers with greater negotiating power rising 5c/kg to 10c/kg higher when bonus payments or allowances on transport are included. Last week’s sheep kill increased by 5,230 head to 50,930, with plants affected by the protests carrying out a small kill at the end of last week.
The breakdown of 43,545 lambs and 7,296 ewes and rams was 10,316 and 6,256 lower respectively than the corresponding week in 2018.
Ewe prices have been under some pressure in recent weeks, with plants prioritising lamb to fill the void in the market.
Ballon Meats’ quote has slipped 10c/kg to an all-in quote of €2.60/kg, leaving just 10c/kg separating official quotes. Top prices paid to specialist suppliers are reported 10c/kg to 20c/kg higher, with individual sellers facing challenges pushing prices higher than those quoted.
The northern trade has taken another hit, with quotes for Thursday reducing 5p/kg in Linden Foods to £3.50/kg and 10p/kg in Dunbia to £3.45/kg. This equates to €3.88/kg and €3.95/kg respectively at 88.7p to the euro and €4.10/kg to €4.15/kg VAT inclusive at 5.4%.
Farmer confidence is waning fast, with prices running 25p/kg (28c/kg) below the corresponding period in 2018 and reports of farmers pushing under-finished lambs on to the market ahead of Brexit.
Throughput in northern plants reduced again last week by 571 head, with increasing beef throughput putting pressure on processing capacity.
The number of northern sheep crossing the border for direct slaughter in southern plants increased by 1,025 head to reach 8,740.
British prices have also fallen, with the latest AHDB report pointing to prices easing by an average of 5p/kg, with R2/3 lambs selling for £3.75/kg (€4.22/kg excluding VAT).
British producers also continue to draft higher numbers, while, in turn, processors are pushing higher quantities on the export market.
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