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Some factories have attempted to pull back lamb prices as we approach Christmas. Kildare Chilling was the only main exporting plant with some seasonal cheer, holding its quote at €4.90/kg (plus 10c quality assurance (QA)).
Irish Country Meats and Kepak reduced their quotes by 10c/kg to bases of €4.75/kg and €4.80/kg respectively excluding bonus payments. Ballon Meats and Moyvalley held their quotes at €4.90/kg all-in. Farmers will be disappointed with the reduced quotes in the lead-up to Christmas, but prices actually paid are well above official quotes.
Most farmers continue to secure €4.95/kg including bonus payments for their lambs. Producer groups and farmers with a large number of fleshed lambs are securing €5.00/kg to €5.10/kg.
The lamb kill was up last week, with a total of 54,510 slaughtered (up 7,216 head on the week previous). However, it is worth pointing out that the kill is still behind the same period last year, back 3,321 head compared with the same week in 2017.
With some plants holding the price and others attempting to pull it back, it looks like there is still good scope to negotiate a higher price than what is being offered.
Where quotes were reduced, agents have been talking down the trade, pointing to reduced demand on the continent, especially France, greater competition from UK lamb exports with a weaker sterling and an influx of lambs being brought to the market.
Sheep throughput in Northern Ireland has also increased on the back of recent price increases. Last week’s lamb kill increased 245 head to 9,273, with the ewe and ram kill up 229 head to 636.
The lift in throughput and the fact factories are in a good position with Christmas supplies has delivered the same opportunity to try to ease back prices, with quotes falling 5p/kg to £4.05/kg.
Sterling has weakened amid further Brexit uncertainty and at 90.3p to the euro, this quote equates to €4.49/kg or €4.72/kg including VAT at 5.4%. There are regular sellers securing 5p/kg and in cases 10p/kg higher.
Meanwhile, IFA sheep chair Sean Dennehy said: “The IFA has requested Minister Creed to tackle excessive costs and charges imposed on sheep farmers by the factories. Sheep farmers who are on very low incomes cannot afford to carry high charges on EID, clipping charges under the clean sheep policy and the unfair SRM and scrapie charges on ewes.”
Cull ewes
Cull ewe prices are on the rise, with most farmers now securing €2.80/kg to €2.90/kg and some specialised finishers securing up to €3.00/kg. Factory quotes continue to disappoint at €2.60/kg to €2.70/kg, but agents have been hinting about making a move to increase quotes.
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