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Upward momentum in the sheep trade has gained intensity this week, with base quotes for Thursday rising by another 10c/kg to 20c/kg.
Kildare Chilling is setting the pace with its base of €4.90/kg plus 10c/kg quality assurance (QA) bonus, up 20c/kg on last week’s quote. Kepak Athleague follows closely with its base quote of €4.75/kg and 15c/kg QA bonus representing an increase of 15c/kg.
Dawn Meats has also increased 15c/kg to a similar base of €4.75/kg, but with a 5c/kg lower QA bonus of 10c/kg, while the two Irish Country Meats plants in Camolin and Navan are quoting €4.70/kg plus 10c/kg QA. Ballon Meats and Moyvalley Meats are on an all-in quote of €4.80/kg.
Prices paid to individual sellers obviously vary greatly given the variance in quotes. Producers with smaller numbers are securing returns ranging anywhere from €4.85/kg to €5.00/kg for QA lamb. The lift in quotes will bring prices paid to producer groups to €5.05/kg to €5.10/kg, with 5c/kg to 10c/kg higher paid for lambs securing conformation bonuses.
Factories are extremely keen to tie into numbers, with peak buying for the Christmas trade currently in motion. Reports show factory agents clashing with greater intensity where competing for large batches of sheep, with specialist producers not aligned to any factory realising they are in the driving seat and selling hard.
Prices at the top of the market are rising to €5.10/kg to €5.15/kg or the equivalent of this, with some plants willing to cover transport costs, while allowances on weight are also being given in cases to secure large numbers.
The higher activity is attracting out more sheep, with last week’s kill rising 5,402 head on the previous week to reach 62,520.
Ewe numbers are tight, with about 9,000 head slaughtered last week. Quotes average €2.60/kg to €2.70/kg, while top prices are rising to €2.80/kg to €2.90/kg.
The kill also included a higher number of Northern Irish sheep, with the number imported for direct slaughter increasing by 1,872 head to reach 11,045.
The lamb kill also increased in the North, rising from 8,493 head to 9,357, with factory agents increasing activity to hold on to lambs.
This is not reflected in quotes, which remain unchanged at £3.80/kg. This equates to €4.43/kg at 85.7p to the euro, while, at the higher end of the market, producers are receiving £3.90/kg (€4.55/kg) to in excess of £4.00/kg (€4.66/kg), with some specialist producers not willing to move lambs at lower prices.
The latest AHDB price report shows British lamb prices continuing to creep upwards, with the average R3 lamb price for last week reported at £4.23/kg (€4.94/kg). Prices moved up by 5p/kg and higher again this week.
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