Irish and UK sheep price exceeding French price

The strength of the farmgate prices received by Irish and UK sheep farmers in recent weeks is highlighted by the fact that their prices are exceeding returns paid to French farmers.

The Bord Bia sheep price dashboard for the week ending 13 March 2021 shows the French sheepmeat price recorded at an average of €7.08/kg.

This is significantly exceeded by the British price of €7.40/kg, which in recent weeks has emerged as the highest farmgate price across the main sheep producing countries in Europe.

The Irish price is recorded at €6.91/kg but this does not take into account the flat rate VAT payment of 5.6% paid to farmers in Ireland who are not registered for VAT. When this is included, the average price increases to €7.30/kg.

Meanwhile, the Northern Irish price is listed at €7.15/kg while the other main price in an EU context is the Spanish price of €5.95/kg.

The Irish price is running €1.29/kg ahead of the corresponding week in 2020 and €1.95/kg lower than the corresponding week in 2019. The British price increase is similar, with prices running €1.35/kg above the corresponding week in 2020 while the price in Northern Ireland has recorded the greatest level of improvement and is running €1.65/kg higher.

The French price would normally be the envy of Irish farmers and traditionally has run 50c/kg to €1/kg above Irish prices.

It is now running 57c/kg higher than in 2020 but at that stage French farmers were securing a premium of 46c/kg ahead of the British price, 89c/kg ahead of the Irish price and €1/kg ahead of the price in Northern Ireland.

Prices this week are holding largely steady despite factory attempts to insert downward pressure and reduce prices. Factory hoggets are trading on average from €7.20/kg to €7.40/kg while the spring lamb trade is unchanged with the general run of prices ranging from €7.60/kg to €7.80/kg.