The survey shows that retailers are charging consumers from €10/kg to €16/kg for the key lamb cuts, while the farmer price has fallen to as low as €4.70/kg. According to IFA National Sheep Committee Chairman, John Lynskey, this price differential points to a 60% plus mark-up on lamb by the retailers and factories over the farmer price.
The survey shows that retailers are charging consumers from €10/kg to €16/kg for the key lamb cuts, while the farmer price has fallen to as low as €4.70/kg.
According to IFA National Sheep Committee Chairman, John Lynskey, this price differential points to a 60% plus mark-up on lamb by the retailers and factories over the farmer price.
According to Kantar Worldpanel data, the average retail price of lamb last year was €10.50/kg. Lynskey says that based on a 22kg carcase with a saleable meat yield of over 70%, this would return a retail value of €164 per lamb before the value of the fifth quarter. At a farmer price of €100 per lamb, the retail and processing gross margin is over 60%.
Lynskey said factories are telling farmers that retailers are putting pressure on them to push down prices at farm level.
"This has to stop and retailers need to review their pricing policy and return a fairer share of the retail price to farmers, which covers the cost of production and leaves a margin," he said.
Price survey results
Retailer | Loin Chops €/kg | Gigot Chops €/kg | Legs €/kg | Shoulder Chops/Steaks €/kg | Diced Lamb €/kg | Mince €/kg | Liver €/kg | Store Location | Date |
SuperValu | 14.73 | 13.99 | 14.49 | | | | | Mountmellick | 2/8/2016 |
Tesco | 13.47/17.15* | 10.00 | 14.49 | 9.38 | 13.34 | 8.17 | 5.00 | Tullamore | 2/8/2016 |
Dunnes | 13.06/16.19* | | 9.57 | 12.48 | | 8.58 | 4.79 | Tullamore | 2/8/2016 |
Lidl | 16.19 | 13.49 | 9.49** | | 11.81 | | | Tullamore | 2/8/2016 |
Aldi | 16.19 | | 8.79 | | 11.84 | 8.15 | | Tullamore | 2/8/2016 |
*Depending on pack size
**Leg fillet
The chairman added that farmers cannot take any more price cuts and current farm gate prices of €4.70/kg, with some factories quoting as low as €4.50/kg, are now below the cost of production. He said this is not a sustainable position and farmers need a viable price for lamb, which does not involve subsidising the price from direct payments.
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