The sheep trade rebounded strongly in the last week, with hoggets in particular benefitting from a sharp tightening in supplies and jump in demand for the Easter trade.

Finishers with strong numbers on hand say their negotiating power increased strongly this week, with prices for large batches rising to as high as €5.80/kg to €5.90/kg and some reports of €6/kg being hit.

This increase in price did not follow right back down the market and sellers with smaller numbers on hand faced greater challenges in negotiating the higher prices.

This left prices for non-quality assured (QA) hoggets starting at a base of €5.50/kg and rising to €5.70/kg to €5.75/kg for QA hoggets traded in smaller numbers.

The strength in demand was reflected in many agents contacting marts and requesting them to operate a weigh and pay collection point.

This worked well for most and was a source of a few hundred sheep per mart.

Factory agents were the main buyers for hoggets, but wholesalers were also active, along with strong butcher activity for spring lambs.

Spring lamb trade

The spring lamb trade also received a boost, but not to the same extent as hoggets.

Factories that were purchasing spring lambs below the €6.00/kg mark last week were all starting from this base as the week progressed.

Prices ranged in general from €6.00/kg to €6.20/kg, with a top price of €6.25/kg to €6.30/kg reported in a small number of cases when producer bonuses and allowances towards transport are taken into account. Carcase weights also varied, with most deals completed at 20kg to 20.5kg carcase weight and a top of 21kg reported in isolated cases.

Trade prospects

Looking at the hogget trade in the future, a number of plants are quoting for Thursday, but are reluctant to stand on for next week’s trade.

A number of agents comment that they want to wait and see how the trade resumes after the Easter break and see at what level demand resumes. Those that are quoting are offering a base of €5.50/kg to €5.60/kg for hoggets.

Kildare Chilling leads the spring lamb quotes for Thursday with its base of €6.10/kg and 10c/kg QA bonus.

It is followed closely by the two Irish Country Meats plants and Dawn Ballyhaunis, which are quoting €6/kg.

Plants are also reluctant to quote a price for spring lambs for next week until they see what level of demand is present.

Tight supplies

The trade will hopefully be helped by supplies tightening in the wake of big numbers being pushed on to the market in recent weeks.

Last week’s kill reflects the tightness of supplies at present, with the sheep kill falling 5,464 head to 42,202. This includes 3,183 ewes and rams.

The Department has not distinguished between hoggets and spring lambs as in 2019, so it is unfortunately not possible to track the weekly increase in spring lamb throughput.

Reports suggest spring lamb numbers will also be relatively tight next week, as many producers comment that adverse weather had a marked influence on performance this spring.

The kill for the corresponding week in 2019 was recorded at 46,668 head, with throughput rising in advance of a later Easter date of 21 April.

Ewe trade

The ewe trade has also rallied on the back of very tight supplies.

Quotes range from €2.50/kg to €2.70/kg, with regular sellers securing an extra 10c/kg to 15c/kg in cases.

It is important for producers to check paid carcase weight limits when finalising deals, as some plants are imposing an upper limit of 40kg carcase weight.

Some factories are also looking for light ewes less than 30kg and are willing to pay higher for these.

Northern trade

The trade in Northern Ireland also rebounded strongly this week.

Reports suggest agents purchasing on behalf of southern plants were much more active in sourcing sheep direct from farms and feeders, resulting in more competition for hoggets in particular.

The number of sheep exported south for direct slaughter last week was recorded at 4,506 head, down from 5,686 head in the week previous.

Prices paid for hoggets in northern plants averaged in the region of £4.50/kg in recent days or €5.12/kg at 87.9p to the euro and €5.40/kg including VAT at 5.4%.

Higher-priced deals have been negotiated by producers with in-spec hoggets and stronger negotiating power. Spring lamb prices are reported at £4.80/kg to £4.90/kg.

Mart trade

A number of marts acted as a collection point for sheep this week, such was the level of demand.

Heavy hoggets traded on average from €125 to €132, while spring lambs ranged in price from €116 to €124 for lighter lots and up to €126 on average for heavier types.

Farmer support

IFA sheep chair Sean Dennehy said the IFA has been lobbying hard on sheep issues in response to the COVID-19 crisis.

“This week I spoke with Minister Creed and outlined very clearly to him the issues on the sheepmeat side.

“Making sure the EU Commission are in a position to react quickly with market and direct payment support are key IFA priorities.

“In addition, we highlighted the need for the programme for Government to include a targeted payment for sheep.”

Meanwhile, ICSA sheep chair Sean McNamara has dismissed talk of markets coming under pressure next week.

“The bottom line which must be borne in mind is that farmers have worked very hard throughout the spring and kept going during the COVID-19 crisis to keep supermarket shelves full.

“However, now more than ever, they should not be treated with complete contempt by processors and retailers.

“Farmers have to make a margin or else there just won’t be quality assured lamb in EU markets for much longer.”