The sheep trade is steady, with factories holding quotes at last week’s level. There is a wide variation in base quotes which range from €4.80/kg to a top of €5.00/kg in Kildare Chilling. A high percentage of lambs are trading within a price range of €5.05/kg and €5.15/kg, with some top prices hitting €5.20/kg or slightly higher when conformation bonuses or allowances on transport costs are taken into account.

There is also a wide differential in prices paid for non-quality-assured lambs. Some sellers handling small numbers are finding it difficult to negotiate prices much higher than base quotes. While other sellers with greater negotiating power are securing returns of €5.00/kg to €5.05/kg.

Prices are running on average 10c/kg ahead of the corresponding period in 2018. The stronger price of late is failing to compensate, however, for a challenging trade for much of the year, with the Department of Agriculture reporting the average price for the year to date of €4.76/kg (excluding VAT) running 29c/kg behind 2018 levels.

Northern prices are steady, with base quotes averaging £4.00/kg or €4.68/kg at 85.4p to the euro and €4.94/kg including VAT at 5.4%. Top prices are rising by 5p/kg to 10p/kg. British prices are firm, with R grade lambs averaging £4.30/kg to £4.35/kg (€5.04/kg to €5.09/kg and €5.31/kg to €5.37/kg incl VAT).

Global price round-up

The lower Irish price in 2019 can be partly linked to the British sheep sector pushing lambs onto the market in significantly higher numbers in advance of the 31 October Brexit deadline.

This lamb was offered at lower prices in key export markets and in cases displaced Irish exports.

The graph details analysis from Bord Bia’s sheep dashboard. Average British prices in 2019 fell 47c/kg on 2018 levels, while Northern Irish prices reduced by a similar level of 45c/kg. The average Spanish price is 33c/kg lower than in 2018, with the trade weaker in the first half of 2019 and also challenging Irish exports.

In contrast, it has been a great year for Australian and New Zealand farmers. The Australian price has dipped to €4.45/kg in recent weeks on the back of more turbulent trading conditions in China but strong performance in the Chinese and US markets is underpinning a 41c/kg year-to-date increase. At an equivalent price of €5.25/kg for 7 December, New Zealand sheep farmers continue to enjoy record prices, driven by increased exports to China.

While the Chinese market is now more turbulent, the goal for Irish sheep farmers in 2020 has to be to push on market access to the Chinese and US markets.