There has been significant price moves in the lamb trade this week, but, unfortunately for sheep farms, they have been in the wrong direction.
Supplies of factory-fit lambs coming on to the market are increasing, as is the number of imported lambs from Northern Ireland.
Both factors are creating additional price pressure within the market and processors have moved to reduce lamb prices throughout the week.
Lambs processed on Monday were moving at prices similar to the tail end of last week, with €5.40/kg being reported.
However, as the week has progressed, prices were quickly eroded to €5.30/kg at the upper end of the market midweek.
Plants have been slow to commit to a base quote for Thursday.
However, the general consensus is that factory agents are trying to reduce prices towards a base of €5/kg before factoring in supply bonuses.
This would see the majority of lambs moving to slaughter at an all-in price range of €5.10/kg to €5.20/kg, with little scope to negotiate beyond this level.
The only positive for sheep farmers is that some plants may lift carcase weight limits from 20.5kg to 21kg, which would add another €2.50 to the value of lambs.
Commenting on the current lamb trade, IFA national sheep chair Sean Dennehy has accused the factories of shredding lamb prices over the past fortnight.
Dennehy said that for the same week last year, lambs were €5.80 to €5.90/kg, meaning factory prices are down €13 to €15 on last June.
He added: “With lamb prices in the supermarkets at the same level as last year, farmers believe that factories are lining their own pockets at farmers’ expense. They have a lot of explaining to do.”
Last week, there were 6,401 lambs imported from Northern Ireland for direct slaughter at Irish plants, which was the largest weekly import total since mid-February.
With sterling continuing to weaken, the prospect that import numbers will tail off anytime soon is unlikely, as prices north of the border continue to slide.
NI
Base quotes in Northern Ireland have been cut by 20p/kg (23c/kg) with factories now paying 410p to 415p/kg (€4.85 to €4.90/kg inc VAT), although larger finishers and producer groups are negotiating for 420p/kg (€4.97/kg).
At the outlined prices, this makes northern lambs more attractive for southern plants.
Britain
Prices in Britain have also eased as numbers increase in line with seasonal supply.
Base prices are typically 430p/kg, which converts to €5.10/kg inc VAT.
Read more
Budget 2020: Mercosur, environment and farm income concerns
Watch: meet the man who swapped teaching for sheep shearing
SheepWatch: factory price cuts starting to bite at the marts
There has been significant price moves in the lamb trade this week, but, unfortunately for sheep farms, they have been in the wrong direction.
Supplies of factory-fit lambs coming on to the market are increasing, as is the number of imported lambs from Northern Ireland.
Both factors are creating additional price pressure within the market and processors have moved to reduce lamb prices throughout the week.
Lambs processed on Monday were moving at prices similar to the tail end of last week, with €5.40/kg being reported.
However, as the week has progressed, prices were quickly eroded to €5.30/kg at the upper end of the market midweek.
Plants have been slow to commit to a base quote for Thursday.
However, the general consensus is that factory agents are trying to reduce prices towards a base of €5/kg before factoring in supply bonuses.
This would see the majority of lambs moving to slaughter at an all-in price range of €5.10/kg to €5.20/kg, with little scope to negotiate beyond this level.
The only positive for sheep farmers is that some plants may lift carcase weight limits from 20.5kg to 21kg, which would add another €2.50 to the value of lambs.
Commenting on the current lamb trade, IFA national sheep chair Sean Dennehy has accused the factories of shredding lamb prices over the past fortnight.
Dennehy said that for the same week last year, lambs were €5.80 to €5.90/kg, meaning factory prices are down €13 to €15 on last June.
He added: “With lamb prices in the supermarkets at the same level as last year, farmers believe that factories are lining their own pockets at farmers’ expense. They have a lot of explaining to do.”
Last week, there were 6,401 lambs imported from Northern Ireland for direct slaughter at Irish plants, which was the largest weekly import total since mid-February.
With sterling continuing to weaken, the prospect that import numbers will tail off anytime soon is unlikely, as prices north of the border continue to slide.
NI
Base quotes in Northern Ireland have been cut by 20p/kg (23c/kg) with factories now paying 410p to 415p/kg (€4.85 to €4.90/kg inc VAT), although larger finishers and producer groups are negotiating for 420p/kg (€4.97/kg).
At the outlined prices, this makes northern lambs more attractive for southern plants.
Britain
Prices in Britain have also eased as numbers increase in line with seasonal supply.
Base prices are typically 430p/kg, which converts to €5.10/kg inc VAT.
Read more
Budget 2020: Mercosur, environment and farm income concerns
Watch: meet the man who swapped teaching for sheep shearing
SheepWatch: factory price cuts starting to bite at the marts
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