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Following a midweek steadying in the sheep trade, there is fresh downward pressure on prices, with factories trying to reduce quotes by 10c/kg. This has dropped quotes below the €5.00/kg mark (quoted price of €4.90/kg) in plants offering the lowest prices.
However, it should be noted that there is still scope for producers to negotiate on price, with the two Irish Country Meats plants quoting groups a base price of €4.90/kg, but willing to guarantee a base of €5.00/kg for the start of the week.
Plants in the west are also working off the same opening base quote range.
Negotiating power
Groups and sellers with large numbers on hand are securing returns of €5.20/kg to €5.30/kg for deals completed on Monday for lambs moving early in the week.
Sellers with lower negotiating power who are being offered less than €5.00/kg are also resisting these prices, with a significant number of lambs trading from €5.05/kg to €5.15/kg.
Sellers with lower negotiating power are securing returns of €5.20/kg in Kildare Chilling by means of its base price of €5.10/kg plus 10c/kg quality assurance bonus.
Northern factories are also trying to enforce some downward price pressure.
Base quotes are reported at £4.30/kg, which is the equivalent of €4.74/kg at an exchange rate of 90.7p to the euro.
Returns of 5p/kg to 10p/kg higher are being secured by regular sellers.
Prices have also eased in live sales, but agents purchasing for southern plants remain active and are being helped in recent weeks by the exchange rate being in their favour.
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