Sheep producers have faced further price negativity in recent days, with the majority of plants moving to pull prices back by another 20c/kg.

This leaves base quotes in most plants in the region of €6.30/kg plus the respective quality assured bonuses of 10c/kg to 15c/kg.

Groups and regular sellers are securing prices of €6.50/kg to €6.60/kg including bonus payments.

News of the latest price cuts was mooted by some procurement agents on Thursday and was confirmed in communication from factory procurement personnel to producer groups and regular suppliers on Friday.

The slower start to the week with a day’s less processing and fact that prices have been in freefall in recent weeks has brought a nervousness in to the market in certain areas, with some producers fearing further price cuts and continuing to move lambs promptly.

This is aiding the factories’ cause in pulling prices while still getting their hands on sufficient levels of throughput.

Prices are running anywhere from 10c/kg to 30c/kg ahead of the corresponding period in 2021 where quotes started the week ranging from €6.00/kg to €6.20/kg.

The differential between 2022 and 2021 prices has narrowed significantly in recent weeks on the back of prices falling by over €1/kg, or at least €20 per head on a typical 20kg carcase.

Ewes also facing pressure

There is also considerable factory price pressure on ewes, with quotes being pulled by 10c/kg to 20c/kg for this week. Base quotes are typically averaging €3.30/kg, with top prices anywhere from 15c/kg to 30c/kg higher.

Ewe prices are broadly in line with 2021 levels and just like lambs have seen their price differential narrow in recent weeks. Quotes at the start of the month were in the region of €4/kg, signifying a 70c/kg cut. This equates to €21 on a 30kg carcase, rising to €28 and €31.50 per head on a 40kg and 45kg carcase, respectively.