Factories have pulled back lamb quotes substantially for a second consecutive week. Quotes have reduced by 30c to 40c/kg compared with last week’s offerings.

The severe reductions in quotes represent a drop of up to €8/head in one week.

When two weeks of quote reductions are taken into account, lamb values have dropped by €12 to €14/head – quite a substantial fall.

Prices paid to farmers are varied, with producer groups fairing out best. Groups at the top end of the market are securing up to €5.20/kg to €5.30/kg.

On the other hand, farmers with small numbers on hand are being paid €5.00/kg to €5.10/kg.

Some farmers with a number of in-spec lambs are securing €5.15/kg to €5.20/kg.

The majority of factories are paying up to 21kg deadweight for lambs now.

Agents are still commenting that a number of lambs are being presented under-finished and are killing out poorly as a result.

They are advising farmers to weigh lambs before drafting and ensure there is adequate flesh cover before sending lambs for slaughter.

Factory quotes are ranging from €4.90/kg to €5.20/kg. Both Irish Country Meats (ICM) plants are on a base of €4.90/kg. This represents a reduction of 40c/kg compared with last week’s quotes.

Kepak Athleague is not far behind with its quote of €4.95/kg. Kildare Chilling and Ballon Meats are both on a base of €5.00/kg, while Moyvalley has quoted the strongest price of €5.20/kg.

Cull ewes

There have also been substantial reductions in the quotes given for cull ewes. Numbers have increased in recent weeks, as farmers draft ewes after weaning.

Quotes ranges from €2.70/kg to €3.00/kg, with most plants pulling prices by up to 30c/kg in a week. Prices paid range from €3.00/kg to €3.20/kg.

Northern comment

Northern quotes have reduced 30p/kg to 40p/kg on last week’s levels, with most plants not processing until next week.

Quotes are £4.00/kg to £4.10/kg or the equivalent of €4.52/kg to €4.63/kg at 88.5p to the euro and €4.76/kg to €4.88/kg including VAT at 5.4%.

Last week’s kill was recorded at 7,507 head, 2,729 lower than the corresponding week in 2017.

The number of lambs imported south for direct slaughter last week increased by about 1,000 head to 8,023.

British prices have also come under pressure, with the AHDB reporting last week’s average prices falling by over 30p/kg to £4.60/kg (€5.48/kg incl VAT).

A reduction of 20p/kg to 25p/kg appears on the cards this week, with the live SQQ price falling by shy of 20p/kg on Tuesday.

Read more

Sheepwatch: factory cuts starting to bite

Northern view: fewer price deals as cattle trade slows