After weeks of little or no change in hogget prices, there is finally signs of some upward movement in prices, driven mainly by high numbers of hoggets being killed in December and greater numbers imported from the north. More farmers are now securing in excess of €4.70/kg including bonuses, with €4.75/kg common this week. Producer groups have been more successful in their negotiations, with some groups securing €4.78/kg for quality assured (QA) lambs and 10c less or €4.68/kg for non-QA lambs.
After weeks of little or no change in hogget prices, there is finally signs of some upward movement in prices, driven mainly by high numbers of hoggets being killed in December and greater numbers imported from the north.
More farmers are now securing in excess of €4.70/kg including bonuses, with €4.75/kg common this week. Producer groups have been more successful in their negotiations, with some groups securing €4.78/kg for quality assured (QA) lambs and 10c less or €4.68/kg for non-QA lambs.
One group were being paid €4.88/kg for hoggets when transport and bonuses was taken into account.
The price rises are welcome news for feeders who invested in store lambs last December and were hoping for price rises from now on, but higher prices are required to cover costs.
There was also some upward movement on slaughter weights factories are paying to, with many increasing from 22.5kg to 23kg.
Again, most producer groups are securing the higher weight limits with processors reluctant to increase weight limits across the board.
Over the past month, kill-out percentages have improved dramatically due to increased numbers of meal-fed hoggets coming on stream.
This may have been a factor in the cap on prices up to now as output per hogget increased.
With meal feeding, farmers really have to monitor weight gain closely because hoggets are at risk of exceeding weight limits or becoming over-fat very quickly.
Feeding hoggets beyond the weight limits does not make financial sense and all hoggets should be drafted for slaughter as they come fit.
IFA national sheep committee chair John Lynskey said lamb finishers are disappointed at the level prices have opened in the new year, with factories offering €4.70/kg to €4.75/kg and some top prices of over €4.80/kg paid including bonuses.
He said finishers need a substantial price increase to cover the significant higher costs of finishing lambs this time of year.
Lynskey said factories needed to respond to the higher cost of production by increasing prices and also showing more loyalty to their local domestic suppliers.
He said many finishers feel live imports are being used to flatten prices in the winter/spring months.
Cull ewes
Reports suggest processors in the midlands and west are very active for cull ewes. Some farmers are securing up to €2.65/kg. Other factories are still attempting to buy ewes at €2.40/kg to €2.45/kg.
NI
Factories in the North have been attempting to pull base quotes back to £3.65/kg (equivalent of €4.50/kg including VAT), but prices paid remain unchanged at £3.75/kg to £3.80/kg (€4.63/kg to €4.70/kg).
Read more
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