Sheep producers are facing renewed price pressure with factories moving to pull prices by another 10c/kg. Along with heavy price cuts in recent weeks farmers are voicing concern at difficulties in receiving quotes in some plants.

This void of information is reflected in Thursday’s factory quotes, with three out of the four main sheep processing plants not quoting for lambs. Only the two ICM plants are quoting, at a base of €4.70/kg.

The 10c/kg price cut is leaving top prices paid to producer groups and regular sellers falling below the €5.00/kg mark. Sellers handling smaller numbers and possessing lower negotiating power face returns ranging from €4.75/kg to €4.80/kg for quality assured lambs. Returns are running 25c/kg to 35c/kg behind the corresponding week in 2018.

Pressure on the factory trade is casting a shadow on the store lamb trade which has started brightly.

Demand is being boosted by strong grass supplies and reduced pressure to close for second cuts, while some mart managers report beef finishers splitting their risk and purchasing store lambs.

The trade has started in line with 2018, with good quality lowland stores weighing 37kg to 40kg selling from €78 to €85. Lighter lots weighing in the region of 35kg are averaging around the €75 mark.

Japan opportunity

Meanwhile, the announcement of the opening of the Japanese market for sheepmeat exports has been heralded as a strong addition to Ireland’s export portfolio.

Gaining access to Japan may also help to get exports to China over the line faster.