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Sheep producers continue to face a challenging trading environment. Quotes for Thursday remain at last week’s levels, but this is a small solace to producers given the price cuts of recent weeks.
Kildare Chilling tops the quotes table with its base quote of €4.45/kg plus 10c/kg quality assurance (QA) bonus.
The two ICM plants in Camolin and Navan remain on a base of €4.35/kg plus 10c/kg QA, while Kepak is 5c/kg lower than ICM at €4.30/kg, but similar overall for QA lamb with a higher bonus of 15c/kg.
Moyvalley Meats and Ballon Meats are also unchanged with all-in quotes of €4.50/kg and €4.40/kg respectively. Dawn Meats has not quoted for lambs in recent weeks.
Individual sellers are trading within a price range of €4.40/kg to €4.50/kg, with producers trading through groups or possessing greater negotiating power witnessing top returns rising to €4.60/kg to €4.65/kg.
Throughput remains strong, with last week’s throughput recorded at 66,233 head, an increase of 925 head on the previous week. The kill is running 1,098 lower than the corresponding week in 2018, but this hides the fact there were 2,704 fewer lambs processed (54,234) and 1,363 extra ewes and rams (11,660) handled.
There are differing views on supplies coming on stream. General numbers remain steady in the west and northern regions.
However, reports in some areas suggest supplies of well-finished lambs are starting to tighten. This is a view echoed by wholesalers and some mart managers, who comment that fewer farmers are feeding meal due to the lower farmgate price.
The increase in last week’s throughput was underpinned by the number of sheep imported for direct slaughter from Northern Ireland increasing 1,090 head to reach 9,681.
This is 538 head lower than the corresponding week in 2018 with year-to-date imports running 37,228 head lower.
The number of sheep imported to farms was recorded at 2,660 head in September compared with 4,951 in September 2018.
Year-to-date imports to farms of 46,691 head are 3,345 lower. Producers are watching this space closely to see if Brexit negotiations affect this trade.
Last week’s kill in Northern Ireland was recorded at 9,549, a reduction of 225 head on the previous week.
Processors continue to try to balance sheep throughput with a 10-year high cattle kill.
Quotes are unchanged at £3.45/kg or €4.01/kg, with Wednesday afternoon’s stronger exchange rate heading for 86p to the euro and €4.23/kg VAT inclusive. Top price are 5p/kg to 10p/kg higher.
Prices in Britain have also steadied, with the latest AHDB price report showing R grading lambs averaging £3.74/kg (€4.34/kg and €4.58/kg VAT inclusive).
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