Lamb prices continue to rise on the back of a number of weeks of consecutive increases. Base quotes have been rising steadily recently and prices paid are getting closer to the €5/kg mark, with some producer groups already there. Most farmers are securing €4.85/kg including bonus payments with, some negotiating €4.90/kg. There are lambs still moving at lower prices of €4.80/kg, but, as competition increases, this price should be less frequent.
Lamb prices continue to rise on the back of a number of weeks of consecutive increases. Base quotes have been rising steadily recently and prices paid are getting closer to the €5/kg mark, with some producer groups already there.
Most farmers are securing €4.85/kg including bonus payments with, some negotiating €4.90/kg. There are lambs still moving at lower prices of €4.80/kg, but, as competition increases, this price should be less frequent.
The ball is back in the farmers’ court now and farmers need to take the opportunity to negotiate more favourable prices, while there is scope to do so.
For example, agents have been keen for lambs this week, outbidding competitors to lock in supplies. This has become evident in the marts, with prices for fleshed factory-fit lambs rising by €2 to €3/head during the week and even more in places. A number of lamb producers will have their eye on €5/kg and this price will likely become attainable for more farmers.
Kildare increased its base quote by 5c/kg to €4.75/kg. Irish Country Meats also increased its quote by 5c/kg, keeping its base quote of €4.65/kg in touch with the rest.
IFA national sheep chair Sean Dennehy said the clean livestock policy (CLP) is causing significant problems at factory level, with an overly-severe implementation of the policy in some areas. He said the IFA recently met the Department of Agriculture and the factories on the CLP and made it very clear that a more practical and fairer approach must be adopted.
In addition, he said that the IFA requested Minister Creed to instruct the factories not to impose clipping charges on the back of the Department CLP.
In the UK, lamb slaughterings picked up in recent months, but, for the year to date, new-season lamb slaughterings total 6,115,700 head, 8% fewer than in the same period last year, according to an AHDB report. In Northern Ireland, Linden Foods increased its quote by 5p/kg this week to a base of £3.85/kg (4.55/kg including VAT).
The sterling value has been fluctuating considerably over the past week. It is currently sitting at a weak value of 89p to the euro.
A weak sterling makes northern lambs an attractive purchase for southern plants.
A total of 9,952 lambs were imported south for direct slaughter last week. The number imported to date this year totals 377,167 head, up 30,630 for the year so far.
Cull ewes
The cull ewe trade is stronger than the quotes suggest. Most ewes are moving at prices from €2.55/kg to €2.60/kg, far higher than the lowest quote in our table of €2.40/kg. In the marts, demand for ewes has been on the rise, with fleshed ewes making €100 to €110/head.
Read more
Sheepwatch: sheep trade getting lively
Northern view: cattle quotes slipping as killing delays continue
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