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There is a stalemate developing on hogget prices. Factories have reduced quotes by a further 10c/kg, but this is being met by opposition from producers not willing to move sheep at the lower prices.
This has led to the weekly kill remaining at a relatively low level. Last week’s kill increased by 1,713 head, but it is well behind the corresponding week in 2018, when 50,286 sheep were processed.
Factories appear resolute in their attempts to keep a lid on price, with the lower weekly throughput now cumulating into 43,026 fewer sheep processed to date in 2019.
Kepak and the two Irish Country Meats plants are quoting a base of €5.00/kg for Thursday, with Kildare Chilling and Dawn Ballyhaunis not quoting for hoggets. Ballon Meats and Moyvalley Meats remain on all-in quotes of €5.30/kg.
Prices paid have largely ranged between €5.25/kg and €5.35/kg, with top prices of €5.40/kg paid to specialist finishers.
There is strong demand across all plants for quality assured (QA) lamb, with many trying to stick closer to base quotes for non-QA sheep.
Factories also report hoggets continuing to kill better than normal for the time of year and are advising farmers to draft more often.
IFA sheep chair Sean Dennehy said farmers need a higher premium to reward them for producing QA lamb and to promote increased participation in the scheme.
“IFA are pushing for the bonus for quality assured lamb to increase to 30c/kg. Some factories have already moved with 15c/kg and 20c/kg payments but we need this to increase further.”
The higher throughput recorded last week stemmed from higher sheep imports from Northern Ireland.
Volumes imported increased 2,193 head to 6,685, while sheep throughput in northern plants reduced again, falling 273 head to just 4,474.
Plants have reduced quotes by 5p/kg to £4.20/kg. With sterling strengthening to its strongest level since May 2017 at 85.8p to the euro, this equates to €4.90/kg and €5.15/kg including VAT at 5.4%.
Factories are keen for hoggets and are, in cases, paying 5p/kg higher, but, like southern plants, are resisting upward movement.
Cull ewes
The cull ewe trade is steady, with quotes ranging from €2.60/kg to €2.80/kg, while top prices range in general from €2.80/kg to €2.90/kg.
There is greater appetite in some plants for ewes and this is reflected in strong purchasing activity in mart sales.
While the hogget kill is running well behind 2018 levels, ewe and ram throughput is largely unchanged at throughput of 64,593 head.
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