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Lamb prices continue to climb as factories work hard to secure numbers.
Most farmers are securing prices of €5.20/kg for their lambs. Some are successfully negotiating €5.25/kg for quality in-spec lambs.
Weight limits are being adjusted upwards in certain instances to secure deals, with 23kg and even 23.5kg limits more attainable now.
With numbers tightening, factory agents will be forced to compete to keep their orders filled.
Last week, just 44,230 head of lambs/hoggets were slaughtered, which is back 10% on 2018, highlighting the current tightness.
Kildare Chilling leads the charge in terms of base quotes. It is quoting farmers €5.10/kg (plus 10c quality assurance (QA)). Kepak and Irish Country Meats remain on a base of €4.95/kg and €4.90/kg excluding bonus payments.
Ballon Meats increased its quote by 10c/kg to an all-in price of €5.10/kg. Moyvalley held its quote at €5.00/kg.
IFA national sheep chair Sean Dennehy said lamb price continues to rise, with €5.30/kg more widely available this week.
He said butchers and wholesalers are very active for the tighter numbers in marts and this is a good option for feeders, particularly for heavier hoggets.
Thankfully, the lack of rainfall has meant lambs are in fairly clean condition as they are presented for slaughter.
This is reducing the amount of rejections occurring at processing facilities. However, this situation can change quickly if rain returns and farmers need to take all the precautions they can.
Prices are looking very positive currently and farmers will obviously hope the trend continues. Factory agents are issuing cautious warnings to farmers not to be overly enthusiastic, pointing to potential volatility to the trade in the event of a bad Brexit outcome.
Although Ireland is not overly dependent on the UK for our sheep exports, we could still feel the effects of a no-deal outcome.
New Zealand lamb usually destined for UK shores could in the future be competing with our lambs in Europe if tariffs are put in place in the UK.
In the North, lamb prices have increased by 10p/kg (11.23c/kg). Lambs are now being quoted at £4.30/kg to £4.35/kg (equivalent of €5.09/kg to €5.14/kg including 5.4% VAT).
Prices in the UK are also up for lambs, with average prices paid at £4.33/kg (equivalent of €5.12/kg including VAT).
Cull ewes
Last week, 10,782 head of ewes and rams were slaughtered in factories. Numbers remain strong and are up over 2,000 on 2018. Prices are hardening, with farmers being paid €3/kg for ewes.
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