Sheep prices: demand driving price recovery

There is more life in the sheep trade since the weekend. Factories who reduced their base quotes in recent weeks have been forced to lift base quotes to close off deals and ward off interest from competing plants.

Dawn Ballyhaunis has lifted its base quote by 10c/kg to €4.80/kg, while Kildare Chilling is back quoting a base price of €4.85/kg after a two week lapse.

The two ICM plants are not quoting, but reports indicate the processor has also upped its base quote from last week.

Moyvalley Meats and Ballon Meats remain on an all-in quote of €4.90/kg, but it is Kepak Athleague which has set the pace for the week ahead with a 10c/kg increase to a base of €4.95/kg.

Numbers continue to tighten slowly and this is reflected in last week’s kill falling 3,958 head to 49,678.

The kill is on a par with 2017 levels, with prices running 30c/kg to 40c/kg higher.

Plants that had curtailed top prices paid to some finishers to €4.95/kg to €5.00/kg in recent weeks have also relaxed upper prices paid.

This has left more producers securing returns of €5.05/kg to €5.10/kg in recent days, with reports showing that producers trading at the top end of the market are having more success in pushing for a price of €5.15/kg.

It should be noted that the clean livestock policy remains a big factor in deals completed, with some of the higher prices restricted to finishers delivering clean lambs that will not risk falling into category C.

Producer groups have also negotiated higher base prices, with some resisting the lower quotes offered and digging in for higher prices before moving lambs.

IFA sheep chair Sean Dennehy said: “The problems with some factories and Department officials on the clean sheep is continuing and this is damaging the smooth implementation of the clean sheep policy.

“Farmers are trying to have their sheep as clean as possible, but in the current weather conditions, a more practical approach needs to be applied.”

There is also more life in the ewe trade, with Ballon Meats joining Kepak on a top quote of €2.90/kg. Top prices range from €3.05/kg to €3.20/kg.

The northern trade is steady, with base quotes of £4.05/kg. At yesterday’s exchange rate of 87.8p to the euro, this equates to €4.61/kg and the equivalent of €4.86/kg including VAT at 5.4%.

Regular sellers continue to secure higher returns, with top prices paid of £4.15/kg to £4.20/kg (€4.72/kg to €4.78/kg and €4.97/kg to €5.04/kg including VAT).

Buyers purchasing for southern plants remain very active in mart and direct farm sales, with the number of sheep exported south for direct slaughter rising by about 500 head to 9,336.

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