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Farmers and factories are engaged in hard negotiations over very sluggish hogget prices. Prices are currently sitting at €4.70/kg to €4.75/kg. This time last year they were over €5.50/kg.
IFA president Joe Healy said hogget finishers are extremely frustrated with the loss making prices on offer from meat plants, which he said are down approximately 65c/kg or €15 per head on this time last year.
He said in some instances, with weight cuts, the losses are as high as €20/lamb.
In a meeting this week with Meat Industry Ireland, the body which represents the country's meat factories, Healy called on the factories to come out and offer a viable price for in-spec quality hoggets. He said factories are unfairly using a relatively small volume of increased numbers of heavier hoggets to undermine the market.
Healy said: “If the factories want in-spec quality lambs and hoggets, let them offer a viable price for them and farmers will move them earlier and at lighter weights.”
Cormac Healy from MII said the excessive number of very heavy hoggets coming out at present is depressing the return achievable in the market.
“Legs and other cuts from these carcases are simply outside market specifications and customers do not want them,” Cormac Healy explained.
He stressed the need for farmers to market their hoggets as soon as they come fit.
He also pointed out that UK lambs have been trading at a lower price than Irish for some time, which makes them very competitive in export markets.
He said the current strong supply of domestic Lacaune lambs in France was not helping our export market either.
IFA sheep committee chair John Lynskey said factories need to adopt a more responsible and longer-term approach to ensure the continued supply of quality assured lamb out of season to meet their retail requirements on a full year-round basis.
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