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Factories are working hard to secure finished lambs, as numbers available are very tight. Last week, just 30,579 head of spring lambs were slaughtered, back 5,749 head compared with the same period last year.
The tight supplies have worked in favour of lamb producers, with prices up 10c/kg compared with last week. Farmers are now securing €6.05/kg to €6.10/kg, excluding bonuses.
Producer groups and farmers with large numbers on hand are negotiating prices of up to €6.15 to €6.20/kg.
Irish Country Meats has increased its quote this week by 10c/kg to a base of €5.90/kg, excluding bonuses. Kildare Chilling and Kepak Athleague have held their base quotes at €6.00/kg and €5.90/kg respectively.
Moyvalley held its quote at an all-in price of €6.00/kg and Ballon Meats did not quote this week for lambs.
Dawn Ballyhaunis has failed to quote for lambs again this week.
Hogget quality and quantity is dropping fast, which is also taking from factory supplies. Just 6,215 hoggets were killed last week, representing 14% of the total sheep kill.
ICM and Kildare continue to quote a base of €4.90/kg for hoggets, but agents say prices paid vary significantly depending on quality.
IFA national sheep chair Sean Dennehy said the reality of the market is that factories were not able to buy lambs at the lower quoted prices over the last 10 days and had to increase the price to get lambs. He said market demand remains solid.
Bord Bia is launching its lamb promotional activities from next Monday. The intensity in promotions is to coincide with the buildup of new-season Irish lamb supplies.
It will involve a mixture of TV advertising and four weeks of outdoor advertising and digital media.
According to Bord Bia, in a nationally representative survey showed six out of 10 shoppers are more likely to choose lamb that carries the quality mark when shopping.
Cull ewes
Cull ewe prices have hardened. Quotes range from €2.80/kg in Irish Country Meats to €3.10/kg in Ballon Meats. Prices of €3.10/kg to €3.25/kg have been paid.
Northern Ireland
The number of sheep imported from Northern Ireland for direct slaughter was recorded last week at 4,472 head, with agents purchasing for southern plants very active in mart sales.
Northern prices remain solid, with quotes of £4.95/kg to £5.10/kg (or the equivalent of €5.62/kg to €5.80/kg at 88p to the euro ex-VAT and €5.92/kg to €6.11/kg including VAT at 5.4%).
AHDB records show British lamb prices strengthening on the back of tight supplies, with last week’s average R3 price recorded at €6.53/kg.
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