There has been a lot more life entering the lamb trade. Reports indicate that plants are finding it more difficult to source required numbers and, as such, are having to offer well above quotes to attract lambs forward.
There has been a lot more life entering the lamb trade. Reports indicate that plants are finding it more difficult to source required numbers and, as such, are having to offer well above quotes to attract lambs forward.
While base quotes in all export plants remain at €4.50/kg and processors point to difficult market conditions, the reality is factories are having to work harder as the week progresses to secure sales.
Many producers with small numbers are securing €4.65/kg to €4.70/kg. Producer groups and sellers handling or offering large numbers have secured €4.75/kg to €4.80/kg, with a few reports of €4.85/kg paid yesterday (Wednesday).
The tightness in supplies is stemming from some farmers opting to let lambs feed into heavier weights, while weaning in mid-season flocks and lower performance earlier in the season has slowed drafting. A vibrant store lamb trade is also helping to keep a good floor under the trade, with buyers pricing factory agents out of the market for lighter slaughter-fit lambs.
IFA national sheep committee chair John Lynskey said: “Farmers are strongly resisting the lower prices and are digging in for more, leading to factories increasing prices from €4.70/kg to €4.80/kg.”
Northern trade
Northern farmers have also reacted to a 20p/kg pull in quotes by moving lambs slower. Quotes are £3.65/kg (€4.56/kg), but reports suggest factories are also having to pay higher to source additional lambs.
The live trade has also strengthened with a recovery in purchasing activity from southern buyers. This source of lambs remains vital to throughput, with 7,000 lambs imported south for direct slaughter last week.
Reports from France point to a steadier trade since the middle of last week. Prices reported average €5.00/kg (equivalent €5.25/kg including VAT) for grade one Irish and UK lambs and €4.50/kg to €4.70/kg (€4.73/kg to €4.94/kg) for grade two lambs.
Clean livestock policy
The Department of Agriculture has confirmed that no new clean livestock policy has been introduced for sheep.
Meat Industry Ireland (MII) is calling on the Department to convene a meeting of all stakeholders. A spokesman said: “A refocusing on implementation of the clean livestock policy is absolutely essential and now is the right time to be addressing the issue, ahead of the vulnerable season from November through to April. Everyone has an important role in the effective implementation and it is important to convene a meeting to ensure all parties are clear as to the approach going forward on this critical issue.”
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