This is a subscriber-only article
Factories are asking farmers and agents presenting sheep to abide by coronavirus protocols in place.
Most have a practice in place requiring farmers to stay in their vehicle while sheep are unloaded by factory personnel. Canteen facilities are strictly off limits, as is gaining access to procurement staff offices, with all business being completed over the phone.
A number of factories also advise that where elderly producers or those with underlying health issues have sheep to trade and are worried about attending factories to make contact, as alternative arrangements can be made.
Base factory quotes for Thursday are in the region of €5.60/kg, which represents a reduction of 10c/kg on last week’s quotes in a number of plants. A high percentage of quality assured (QA) lamb are trading at a price range of €5.70/kg to €5.80/kg, with some regular sellers and producer groups exceeding this range by 5c/kg to 10c/kg by means of bonus payments or allowances on transport costs.
Higher prices are also being paid in cases for hoggets meeting desired carcase weights. On this point, factories are advising farmers to market hoggets at the correct carcase weight, citing the negative effect that overweight hoggets had on the trade in 2019.
IFA national sheep chair Sean Dennehy said: “Factories are very anxious for QA hoggets, with prices of €5.70/kg to €5.80/kg and some top prices of €5.90/kg. It is essential that factories maintain a steady price in the market and avoid unnecessary fluctuations.”
Last week’s sheep kill was increased to a degree by some level of panic selling, but factories say this has settled down.
Throughput was recorded at 55,147 head, which is an increase of 4,076 head on the previous week and a sharp increase of 17,045 head on the corresponding week in 2020.
Demand is currently being helped by relatively strong retail performance.
The increase occurred despite numbers imported from Northern Ireland for direct slaughter reducing from 7,146 head to 5,912. Quotes there also reduced 10p/kg to £4.80/kg, with top prices of £4.90/kg. With sterling weakening to 92p to the euro, this equates to €5.50/kg to €5.52/kg including VAT at 5.4%.
Spring lambs are starting to slowly come on stream in the east of the country. The two Irish Country Meats plants are quoting a base of €6.50/kg plus 10c/kg QA bonus. Some farmers with tight grass supplies areenquiring about the prospects for a milk lamb trade.
Factories say there is likely to be a trade in a week to 10 days, provided there is no movement restrictions into EU markets.
A number of factories also say that there is likely to be firm demand for spring lambs, with Ramadan (starts 23 April) taking place just two weeks after Easter (12 April).
SHARING OPTIONS: