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The sheep trade has come under renewed pressure over the last week.
Quotes for Thursday have reduced by 5c/kg to 10c/kg, with the exception of Ballyhaunis, which has stayed on its base quote of €4.50/kg.
Kepak remains top of the quotes on a base of €4.55/kg plus a 5c/kg quality assurance (QA) bonus. Kildare Chilling is offering a base of €4.50/kg with a 10c/kg QA bonus, while ICM is 10c/kg lower on a base of €4.40/kg.
Moyvalley is on an all-in quote of €4.50/kg.
There is a big variation in the prices paid to sellers.
Individual sellers handling small numbers and possessing lower negotiating power are receiving prices of €4.50/kg to €4.55/kg, while farmers with a bit more negotiating power are securing €4.60/kg.
Producer groups and large-scale producers with more selling power are securing prices ranging from €4.60/kg to €4.70/kg by means of bonus payments, with some securing slightly higher when transport is taken into account.
Factories are blaming poor demand and difficult trading conditions for the latest reduction in price.
The British lamb price recovered this week to £3.85/kg, but a weakening in the exchange rate of sterling to euro (89.8p) has eroded this price improvement (equivalent of €4.52/kg).
Some are also pointing to more lambs in the market, not only in Ireland. Last week’s kill was recorded at 65,498 head, including 51,870 lambs and 13,452 ewes and rams. This is 5,000 head above the corresponding week in 2016.
The northern trade has also weakened, with quotes falling 10p/kg to £3.60/kg or the equivalent of €4.23/kg including VAT. Reports suggest regular sellers are securing 5p/kg more.
Last week’s kill increased by over 500 to 9,619 head, while the number of ewes and rams processed fell from 964 to 714 head. The number of sheep imported south for direct slaughter reduced by 1,240 to 8,133 sheep last week.
Correct paperwork
Kildare Chilling is taking steps to ensure that the correct paperwork accompanies sheep submitted for slaughter, with the 10c/kg quality assurance (QA) bonus deducted for incorrectly completed documentation.
The greatest issue is with lambs from different origins and dispatch documents not including the full 12-digit tag number for these lambs.
The company is also requesting farmers to sign a minimum residency period of 42 days for bought-in sheep to be eligible for the QA bonus.
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