Sheep prices: trade varies from steady to facing renewed price pressure

The sheep trade remains in an unstable position. This week’s trade is starting with a mixture of some outlets remaining steady, while others are trying to reduce prices further, with reports indicating cuts ranging from 5c/kg to 10c/kg.

Kildare Chilling remains the leading plant in terms of quotes offered, with its base price of €5.20/kg plus 10c/kg quality assurance (QA) bonus well out in front of competing plants.

Export focus

A number of other export-focused factories have reduced their quotes back to a base of €5.00/kg or slightly higher.

This is leaving QA lambs trading in small numbers from sellers with average negotiating power from €5.15/kg to €5.20/kg, while producer groups and those handling large numbers are securing returns ranging from €5.25/kg to €5.35/kg on average.

Farmers should continue to keep lambs moving as they come fit

IFA sheep chair Sean Dennehy reports that there are more farmers digging in and securing higher carcase weights limits of 22kg, which is at least some consolation for falling prices.

“Farmers should continue to keep lambs moving as they come fit, but also make sure they are getting the best possible price and weight limit for their lambs.

"Plants are quoting a carcase weight limit of 21.5kg, but there are more producers pushing for and securing an extra 0.5kg carcase weight,” he said.

Word of caution

There is an increasing number of reports of lambs killing out poorly and succumbing to significant price penalties for both underweight and under-fleshed lambs.

Kildare Chilling advises farmers that all light lambs under 15kg carcase weight will be paid at a rate of €4/kg, as will lambs grading O2 and killing less than 17kg carcase weight.