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The trade for hoggets in Britain continues to soar upwards. The latest AHDB price report shows hogget prices increasing by another 25p/kg (30c/kg) last week. This left R grading hoggets recording returns of £5.25/kg to £5.30/kg, equivalent of €6.33/kg to €6.39/kg at 83p to the euro and €6.67/kg to €6.73/kg were VAT at 5.4% to be included.
Reports suggest prices have taken another step upwards this week, with adverse weather in parts playing havoc with lamb performance on root crops and disrupting drafting. This is contributing to already tight supplies, with prices of £5.40/kg (€6.50/kg and €6.86/kg incl VAT) and even higher reported to secure sales.
While the British trade put pressure on the Irish trade for much of 2019, its strong performance of late has been a catalyst for upward trajectory in Irish prices in recent weeks, with Irish lamb competing positively in EU markets.
The trade here is solid, with quotes continuing to edge upwards. However, producers should continue to note that prices paid are lagging behind quotes, with prices ranging on average anywhere from €5.75/kg to €5.95/kg.
The range of €5.70/kg to €5.80/kg is being paid to sellers with small numbers or non-quality assured (QA) lamb, while returns of €5.80/kg to €5.90/kg are being secured by specialist finishers, groups and those with high numbers on offer.
The mart trade has strengthened significantly and is a good alternative for those with lower negotiating power and struggling to deal with factories.
IFA sheep chair Sean Dennehy said factories are this week paying top prices of €6.00/kg for hoggets. He is advising producers to select hoggets carefully and to continue to move sheep as they come fit.
Supplies in the North have also tightened significantly, which is not surprising given the kill and numbers exported south held firm in 2019. The tighter numbers is reflected in the number of sheep imported south for direct slaughter reducing last week by 1,475 head to 6,373 sheep.
Agents purchasing for northern plants have also been more active to hold on to supplies and stem numbers travelling south.
Quotes continue to lag behind prices paid, with regular sellers securing returns of £4.65/kg to £4.75/kg (€5.90/kg to €6.03/kg including VAT at 5.4%).
While there are more reports of sheep falling foul of the clean livestock policy, factories report that numbers are well down on recent years, with finishers becoming accustomed to the new regulations and taking steps to present lambs dry. Factory personnel say this is a vital aspect as wet sheep pose a much greater risk of being classified as category C sheep and being rejected for slaughter.
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