After continuous upward momentum in quotes, factories have moved to try to steady prices, with quotes unchanged for Thursday.

The exception to this is Ballon Meats, which has increased its all-in quote by 10c/kg to €5.40/kg. Dawn Ballyhaunis and Kepak Athleague are unchanged on a base of €5.20/kg, while Moyvalley is also unchanged at €5.30/kg all-in, while ICM and Kildare Chilling are not quoting.

Significant variation continues to be reported between what factories are quoting and prices being negotiated by sellers. A high percentage of lambs traded in deals involving small numbers are moving between €5.35/kg and €5.45/kg, with many factories trying to limit deals with regular suppliers and producer groups to a top of €5.50/kg to €5.55/kg.

Quality assured (QA) lambs are also attracting a higher price, with non-QA lambs discounted.

However, there are numerous reports of deals above this price range, with many involving lambs purchased from well outside the plants’ normal catchment area. Some factories are willing to pay significantly more to secure deals involving large numbers or to tie into a wider supply base.

At the top of the market, returns of €5.60/kg to €5.70/kg have been paid to secure large consignments.

It is not surprising that factories are taking this approach of trying to safeguard long-term supplies, with numbers continuing to tighten significantly.

Throughput

Last week’s throughput was recorded at 44,035 head, a sharp drop of 4,665 on the previous week and a drop of 8,046 head on the corresponding week in 2018. This is despite quotes running 20c/kg to 40c/kg above the corresponding period of 12 months ago.

The number of sheep in the market in Northern Ireland has also tightened. A total of 8,059 sheep were imported south for direct slaughter last week, similar to the previous week, but close to 2,000 head behind the comparable weekly figure in 2018.

Buyers purchasing for southern plants continue to drive the trade in marts, with northern throughput suffering as a result.

Quotes are unchanged at £4.40/kg to £4.45/kg, which equates to €5.01/kg to €5.07/kg at Wednesday afternoon’s exchange rate of 87.8p to the euro and €5.28/kg to €5.34/kg including VAT at 5.4%.

Timely drafting

While numbers are down, factories report the average carcase weight being well up, with lambs killing out much better than anticipated by producers.

Factories point to a significant percentage of heavy carcases (24kg upwards) as requiring additional processing and creating marketing challenges.

They are asking farmers to go through their lambs regularly and take this into account when drafting.

Read more

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Northern view: steady beef trade as supplies increase