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A number of factories have reduced hogget quotes for today. Kepak has dropped 5c/kg, while Ballon has reduced its quote by 20c/kg, with both plants joining Dawn and the two ICMs on €4.80/kg. Kildare Chilling is also quoting 10c/kg less, but lead the pack on a base of €4.90/kg.
While plants have reduced quotes, reports indicate that they are cautious in their attempts to quote less for fear of losing out on hoggets to competing plants.
A few sellers have commented that it is a tactic to push out more hoggets. A good percentage of the remaining hoggets are in the hands of specialised finishers. As such, prices vary significantly, depending on negotiating power.
Sellers handling small numbers or tail-end supplies are entering the market at €5.00/kg, while those with higher numbers are securing €5.10/kg. Some specialised finishers and groups are securing higher, with top prices reported at €5.20/kg.
Last week’s kill recovered to 51,699, an increase of 5,009 with one less day of processing in the previous week and a lull in demand after Easter.
The kill is also running 6,476 head above the equivalent week in 2016. The main driver of this is over 7,000 extra hoggets, with total throughput of 35,602 last week. This is 1,367 head lower than the previous week and, while numbers are finally starting to tighten, there are still considerable numbers about. Numbers processed for the year to date are running 92,217 above 2016 levels.
This is in contrast with spring lambs, where last week’s kill increased to 7,921, a lift of 4,081 on the previous week. This is 2,357 behind the corresponding week in 2016 with 6,370 fewer lambs processed, reflecting the continuous switch to later lambing by processors again left disappointed with low margins.
The two ICM plants have cut their base quote by 20c/kg to €5.70/kg, while Kildare has dropped 10c/kg to a base of €5.80/kg. Meanwhile, Kepak has retained its base of €5.90/kg, which is only bettered by Moyvalley’s all-in quote of €6.00/kg. Prices reported range from €5.80/kg at the lower end of the market to €6.00/kg to €6.10/kg where bonus payments are included.
Northern prices are unchanged, with hogget quotes at £4.10/kg (€5.12/kg including VAT) to 22kg carcase, while spring lambs are selling from £4.60/kg to £4.70/kg (€5.75/kg to €5.87/kg). Imports south totalled 5,012 sheep last week.
Ewe prices have taken a hit, with quotes falling 10c/kg to 20c/kg, with the main export plants quoting €2.50/kg to €2.60/kg.
Farmer sellers are securing €2.70/kg to €2.80/kg for large numbers, with agents finding it more difficult to secure prices of €2.80/kg to €3.00/kg.
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