The sheep trade has finally received a good lease of life. Prices were showing upward momentum midweek, but really took off as last weekend approached and factories found it more difficult to source lambs.
Agents increased prices on offer to regular producers and those with large numbers on hand were paid €4.85/kg to €4.90/kg to move hoggets on Thursday and Friday.
These producers remain in the driving seat, with €4.95/kg to €5.00/kg secured at the higher end of the market over the weekend and since the start of the week.
There were also a few reports of €5.05/kg to €5.10/kg paid for very large numbers of in-spec hoggets, with many plants also relaxing weight limits to 23kg to entice sales forward.
Agents also became much more active in marts as detailed in the mart price report.
The trade retains this higher level of competition, with factory quotes rising 10c/kg to 15c/kg for today (Thursday). Kepak Athleague continues to top the range of quotes with its base quote of €4.85/kg and 5c/kg quality assurance (QA) bonus. This compares with the two ICM plants and Ballyhaunis quoting a base of €4.75/kg, with Kildare on €4.80/kg and Moyvalley and Ballon on all-in quotes of €4.80/kg.
Prices paid are much higher than the quotes, with sellers handling smaller numbers or non-QA lambs receiving €4.85/kg, rising to €4.90/kg for QA lots. Producers handling higher numbers are securing €4.95/kg to €5.05/kg to 23kg carcase weight, while others are holding out for higher.
IFA national sheep committee chair John Lynskey said: “Factories are generally paying from €4.85 to €4.95/kg up to 23kg, but some plants have done deals at €5.00/kg and more in individual cases.”
The trade in the North also took off over the weekend. Many industry sources reported increased activity in marts from agents purchasing for southern plants being the trigger for upward movement.
Quotes have increased by 15p/kg in response, with plants paying up to £4.00/kg or the equivalent of €4.99/kg at yesterday’s stronger sterling of 84.4p to the euro and 5.4% VAT.
Numbers exported south last week for direct slaughter were recorded at 8,108 head – about 700 lower than the previous week.
Northern lambs are reported, in many cases, as costing in excess of €5.00/kg when transport and trading costs are factored into the equation.
Ewes in demand
Ewes continue to enjoy a period of increased demand, both in mart and factory sales.
Factories remain on a similar quote of €2.60/kg, but those handling greater numbers are securing €2.70/kg to €2.80/kg, with 5c/kg to 10c/kg paid at the top end of the market.