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Sheep prices have jumped by 20c/kg to 30c/kg in the last week. Supplies have come under even more pressure, with heavy snowfall restricting last week’s kill to 39,244 head and hitting already fragile reserves. This includes 33,562 hoggets and 5,679 ewes and rams. Quotes range from €5.60/kg to €5.70/kg, excluding quality assurance bonuses.
This is leaving specialist finishers and producer groups in a strong selling position, with prices rising upwards of €5.85/kg to €5.90/kg.
Sellers handling small numbers are still in a strong negotiating position, with plants reluctant to lose out on any potential supplies and paying €5.75/kg to €5.85/kg.
Reports suggest some suppliers handling very large numbers have secured €6.00/kg. This is not easily secured, with a number of sellers with significant supplies on hand said to be unwilling to move hoggets until prices lift to €6.00/kg.
The latest jump in price has left prices running 70c/kg to 80c/kg above 2017 levels, when the trade was dominated by higher throughput levels. The trade is also increasing in Northern Ireland and Britain, with weather also significantly hitting supplies in Britain.
Northern quotes have increased by 25p/kg to £4.80/kg. Sterling has weakened against the euro in recent days and at Wednesday afternoon’s exchange rate of 89.5p to the euro, this equates to €5.36/kg or €5.65/kg including VAT.
Regular sellers are also having more success in securing higher prices, with top returns rising to £4.90/kg to £4.95/kg (€5.77/kg to €5.83/kg).
Some specialist finishers are securing 5p/kg extra, with British prices also passing £5.00/kg (€5.88/kg) in recent days.
The trade is being underpinned by tight supplies in Europe, with the volume of New Zealand sheepmeat entering the EU continuing to decline.
Irish and UK processors have been successful in securing some of these markets in recent years and are now in a position of having to fill these markets. It is this pressure which is said to be helping to lift prices.
€150 for spring lambs
IFA national sheep chair Sean Dennehy said spring lamb supplies will be very scarce for Easter and early lamb producers need at least €150 per head to cover the higher costs.
He said: “With hoggets at €6.00/kg, butchers, wholesalers and factories would have to offer up to €150 for top-quality spring lamb to return a margin.”
He added some factories have been talking with suppliers about offering €8.00/kg for milk lambs up to 13kg and that this may be a good option for some farmers, depending on grass supplies and labour availability. This trade was mainly from Kepak and ICM in previous years.
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