It has been a whirlwind seven days for sheep producers. Factories significantly increased quotes by 10c/kg to 20c/kg on Friday and by a similar level again over the weekend, with demand outstripping supply.

There was fierce competition in some areas between factory agents keen to get higher numbers on hand at the start of the week to start filling orders for the Ramadan festival (starts Thursday 23 April) and this also helped push prices upwards.

Spring lamb prices increased to €6.50/kg to €6.70/kg at the start of the week, while returns for hoggets ranged anywhere from €6.20/kg to €6.30/kg.

The two ICM plants in Camolin and Navan, along with Kildare Chilling, are quoting a base of €6.40/kg plus 10c/kg quality assurance bonus

Factories have come into higher numbers of sheep as the week has progressed and, as such, quotes for Thursday have been eased by 10c/kg to 20c/kg in some cases.

The two ICM plants in Camolin and Navan, along with Kildare Chilling, are quoting a base of €6.40/kg plus 10c/kg quality assurance (QA) bonus for spring lambs. Dawn Meats is quoting a base of €6.20/kg plus 10c/kg QA, but with a 0.5kg higher carcase weight limit of 20.5kg.

The tightness in supply is reflected in last week’s kill being recorded at just 39,651 head

Kepak reports that it has its kill sourced for Thursday and will not be processing on Friday, so is holding off quoting at present for next week. The other plants also comment that quotes on offer are day to day.

The tightness in supply is reflected in last week’s kill being recorded at just 39,651 head.

It is good to see the Department classifying throughput of spring lambs again, with the kill broken down into 30,415 hoggets, 4,797 hoggets and 4,439 spring lambs.

Hogget quotes are all on a base of €6.00/kg

All plants urge suppliers to market sheep at the correct weight and fat cover. Many predict that after the first burst of spring lambs on to the market, supplies will tighten.

Some plants are cutting lambs killing under 17kg carcase weight or grading a fat score 1 by €1/kg to encourage better drafting. Hogget quotes are all on a base of €6.00/kg.

The quality of hoggets is reported as highly variable and factories report they are willing to pay a little more for hoggets ticking all the boxes on weight and fat cover, while lots falling out-of-spec for reasons such as being overweight or underfleshed or presented lame or in lamb are being discounted.

Private storage aid

Sheepmeat demand and prices have not been hit to the same degree as other sectors, but it is good that it was at least included if required with the other sector products in the EU’s private storage aid scheme.

Sheepmeat has been included with a budget of €20m or €555/t for 36,000t. See page eight for the full story.

Northern trade

Quotes in Northern Ireland have increased, but continue to lag behind prices paid. Spring lambs are quoted at a price of £5.00/kg to £5.20/kg or the equivalent of €5.72/kg to €5.95/kg at 87p to the euro and €6.03/kg to €6.27/kg VAT inclusive at 5.4%.

The number of sheep exported south last week for direct slaughter was recorded at 4,666 head

Prices of £5.30/kg to £5.40/kg have been paid to secure sales, with buyers purchasing on behalf of southern plants said to have driven the trade in recent days.

The number of sheep exported south last week for direct slaughter was recorded at 4,666 head and this is expected to be repeated or even exceeded this week.

Hogget quotes have also increased by 20p/kg to 30p/kg and range from £4.70/kg to £4.90/kg. As is the case in the south, factories report the quality of hoggets becoming more variable and say this is having a direct influence on the potential to negotiate higher.