Sheep prices: factories try to soften prices

Factories have moved in recent days to reduce lamb prices, with quotes for today (Thursday) in export-orientated plants back by 10c/kg.

Kildare Chilling remains top of the export plants on a base quote of €4.95/kg, with Kepak Athleague and Dawn Ballyhaunis next up on a base of €4.90/kg. This leaves the two ICM plants on a base of €4.80/kg, while Ballon Meats and Moyvalley Meats are quoting an all-in price of €5.00/kg.

General prices paid have also reduced by 10c/kg, leaving lambs trading at the higher end of the market selling from €5.00/kg to €5.05/kg, with group lambs reaching a top of €5.05/kg to €5.10/kg by means of bonus payments, while sellers moving smaller numbers of non-quality assured lambs are trading at €4.85/kg to €4.95/kg.

Factories point to an increase in throughput as putting some pressure on the trade, with last week’s kill rising 9,387 head to 61,623.

Within this, many agents continue to report a higher than normal percentage of under-finished lambs and plenty that could do with more feeding.

The jump in the kill coincides with plants increasing throughput in advance of the Muslim Eid al-Adha festival, which starts on 1 September.

This is likely to see the kill grow over the next week, with peak throughput exceeding 70,000 ahead of the festival for the last two years.

NI trade

Northern processors have also moved to pull prices back by 5p/kg to 10p/kg, with supplies entering peak seasonal throughput, reflected in last week’s kill reaching 12,762 (includes 606 ewes and rams).

Base quotes are £4.05/kg to £4.10/kg or the equivalent of €4.64/kg to €4.75/kg including VAT, with top prices 5p/kg to 10p/kg higher.

Southern agents were active in sourcing lambs in northern marts and in direct factory sales in the last week, leading to prices in many cases exceeding equivalent factory deadweight prices, with deals of £4.25/kg to £4.30/kg reported in direct farm sales (€4.86/kg to €4.93/kg incl VAT).

There is no updated data on imports for last week, but forecasts suggest it was well above the previous week’s level of around 7,000 head, with the fall in the value of sterling to euro making northern lambs an attractive proposition.

IFA sheep chair John Lynskey said: “Factories increased the lamb kill to 61,623 last week ahead of the Eid al-Adha festival, with the kill likely to be higher for the next two weeks, as demand is strong.

“The IFA has received calls over northern lambs at the meat plants in recent weeks. Farmers feel the factories are using northern lambs and the weakness in sterling against local suppliers.”

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