The sheep trade has finally turned a corner, with tighter supplies this week generating an increase in prices paid. This is reflected in factories increasing their base quote by 5c/kg to 10c/kg for today (Thursday).
The sheep trade has finally turned a corner, with tighter supplies this week generating an increase in prices paid.
This is reflected in factories increasing their base quote by 5c/kg to 10c/kg for today (Thursday).
Both Kepak and ICM have increased their base quote by 10c/kg to €4.50/kg and €4.60/kg respectively, with Kildare Chilling rising 5c/kg to a base of €4.55/kg. Dawn Meats have not quoted for today, while Ballon and Moyvalley remain on an all-in quote of €4.60/kg.
Prices paid to sellers vary significantly, with factories keen to tie into deals for large lots of lambs. This is leading to prices paid to regular sellers ranging from €4.70/kg to €4.75/kg on average, with top prices rising to €4.80/kg and higher when producer group bonuses are added into the mix.
The strengthening in the trade is also reflected in mart sales, where this week’s prices have increased by an average of €2 to €4 per head. Sellers with smaller numbers and non-quality assured (QA) lambs are being offered prices of €4.60/kg to €4.65/kg.
Last week’s kill reduced by 14,379 head to 54,431, with the high kills of recent weeks and challenging conditions leading to poor lamb thrive starting to take more of an effect.
The ewe and ram kill, at 9,064 head, reduced 3,298 and remains an important component of throughput.
Northern Ireland
Supplies are also tightening in Northern Ireland.
The sheep kill spiked a fortnight ago to 12,161 and reduced last week to a more normal level of 9,415 lambs, while the ewe and ram kill was steady at 877 head.
The number of sheep coming south for direct slaughter fell by 754 head to 7,997, despite agents purchasing for southern plants being particularly active in mart sales.
Northern plants have increased their quote by 5p/kg to 10p/kg to a base of £3.75/kg or the equivalent of €4.45/kg at 88.9p to the euro and including VAT at 5.4%. Reports suggest that sellers trading at the top of the market are securing 5p/kg higher, with the trade climbing upwards.
Bargain hard
IFA national sheep committee chair John Lynskey said: “Farmers are in a much stronger selling position, with agents anxiously looking for stock.
"Farmers with fit lambs should bargain hard and insist on a good bonus over the quoted prices on offer from the factories. It has cost a lot to get lambs finished and this should be reflected in higher returns and carcase weights rising to 23kg.”
Base quotes for ewes are unchanged at €2.40/kg. Prices for QA ewes are rising to €2.50/kg to €2.55/kg, with top prices paid to regular sellers 5c/kg to 10c/kg above this.
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