Factories trying to hold lamb prices

Factories have set €4.80/kg as the top price they are trying to source lambs at, but are still having to make do with a lower kill.

Darren Carty

24 August 2016

The wholesale and butcher trade has held steady with firm competition for finished lambs.

There is no change to factory quotes for this Thursday. Export plants are quoting a similar base of €4.60/kg, with Moyvalley on an all-in-quote of €4.70/kg and Ballon Meats on €4.80/kg. The difference to the trade from last week is that factories are trying to set top prices paid to farmers at €4.80/kg. Producer groups are, in cases, securing €4.85/kg to €4.90/kg by means of group bonuses, while some sellers have also opted for the wholesale or butcher market where the trade is solid.

There is no change to factory quotes for this Thursday. Export plants are quoting a similar base of €4.60/kg, with Moyvalley on an all-in-quote of €4.70/kg and Ballon Meats on €4.80/kg.

The difference to the trade from last week is that factories are trying to set top prices paid to farmers at €4.80/kg. Producer groups are, in cases, securing €4.85/kg to €4.90/kg by means of group bonuses, while some sellers have also opted for the wholesale or butcher market where the trade is solid.

The tightening in prices means that a high percentage of quality assured sheep traded by individuals are trading from €3.75/kg to €3.80/kg, although some regular sellers have secured 5c/kg higher.

The clampdown on prices is not doing any favours in attracting sheep forward with last week’s sheep kill remaining low for the time of year at 53,262 head, up about 593 on the previous week. This compares with the kill running 8,000 head higher than in the same week in 2015.

Factory agents struggling to do deals have, in cases, turned to the mart trade, but with numbers of factory-fit lambs remaining tight, some prices have increased by an average of €1 to €2/head.

Agents are also making inroads in having a higher supply of lambs coming on stream for the upcoming Eid al-Adha which takes place from 11 to 12 September.

Live exports continue their purchasing of smaller numbers, with prices quoted at €2.20/kg to €2.30/kg liveweight. Reports suggest that some factories are also targeting this trade and are sourcing ram lambs for slaughtering in the run into the festival.

IFA national sheep chair John Lynskey said: “Lamb prices are stable this week, with most sellers commanding €4.80/kg and top prices of €4.90/kg paid. Demand is positive, driven by an anticipated increased kill for the upcoming festival.”

Northern trade

Northern plants are operating a similar policy of trying to put a lid on price. Quotes remain unchanged at £3.85/kg, the equivalent of €4.74/kg, with the sterling to euro exchange rate remaining higher at just over 85p.

Regular sellers and those with greater negotiating power are securing £3.90/kg to £3.95/kg (€4.80/kg to €4.86/kg). LMC reports British lamb prices averaging £4.26/kg (€5.24/kg) for week-ending 20 August.

Ewe trade

The ewe trade is variable, with plants showing very different levels of interest. Quotes vary from €2.30/kg in Ballyhaunis to €2.50/kg in Ballon, with ICM not quoting this week for ewes. Top prices paid range from €2.50/kg to €2.60-€2.70/kg.