The sheep trade was rocked in the space of 24 hours on Monday. The price of hoggets in the UK collapsed, with the AHBD reporting prices falling by a massive level of 80p/kg from the start to the end of trading on Monday.

Further price reductions as the week has progressed have seen the average R grade price fall from the AHDB reported figure of £5.50/kg (€5.98/kg at 92p to the euro and €6.30/kg incl VAT) last week to in the region of £4.30/kg to £4.50/kg (€4.67/kg to €4.89/kg and €4.93/kg to €5.16/kg) this week.

This has eroded the competitiveness of Irish lamb; that is if key export markets were importing similar volumes.

This is the second aspect that has rocked the trade. Factories report a significant number of orders were reduced or cancelled altogether on Monday, with demand in France particularly under pressure.

The AHDB reports that a lockdown on the movement of people and closure of open-air markets in many cities is denting demand, while reports also indicate that French processors and retailers are championing sales of domestic produce in a bid to support their own farmers who also face significant trade challenges.

Sales in other key export markets such as Germany, Belgium and Scandinavian countries are also reported as reducing this week.

This has left Irish exports turned upside down and going from a position of factories actively looking for greater supplies over the weekend, and in cases increasing prices paid, to not quoting for hoggets or spring lamb. Factories still want sheep, but they are unsure as to what price to quote and are generally only quoting for the next day’s kill.

Reports show that hoggets purchased for Thursday’s kill have ranged in price from €5.30/kg to €5.50/kg, with some deals completed at a top of €5.60/kg.

Spring lamb prices are variable and range anywhere from €6.00/kg to €6.60/kg, but, again, factories are unsure as to demand.

The trade for milk lamb also appears to have slowed, with factories advising customers to talk directly to their agent to keep abreast of prospects for this trade. Factories hope that the trade has responded harshly to greater restrictions on movement and that it will record a level of recovery in the coming days and that some stability will return.

IFA sheep chair Sean Dennehy said: “It is clear that Minister Creed will have to make a strong case for the EU Commission to step in to support the trade and farmers at this extremely difficult time.”

A similar situation faces producers in Northern Ireland, with factories also not quoting for Thursday. Reports show hoggets moving at a range of £4.20/kg to £4.30/kg for Thursday’s kill, but quotes thereafter are as low as £4.00/kg thereafter.