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Factories have moved this week to reduce prices by 10c/kg.
The two ICM plants reduced their base quote to €4.70/kg at the start of the week and remain on this quote for today (Thursday).
Kepak Athleague and Kildare Chilling eased the base quote back as the week progressed and, with respective reductions of 15c/kg and 10c/kg on last week’s levels, are offering a base quote of €4.80/kg.
Dawn Ballyhaunis is not quoting for today, while Ballon Meats has reduced 20c/kg on last week to an all-in quote of €4.80/kg, with Moyvalley Meats offering €4.90/kg.
Start of the week
Prices paid at the start of the week ranged from €4.85/kg to €4.95/kg with regular sellers trading at the top of the market securing €5.00/kg to €5.05/kg.
This higher quote has become harder to secure for lambs traded in the second half of the week, with factories trying to keep top prices to €4.90/kg to €4.95/kg, with some sellers exceeding this level through producer group bonuses.
another big kill is expected this week
Factories point to another lift in the weekly kill as putting pressure on sales. Last week’s kill increased by 6,760 head to 68,083 (includes 11,498 ewes and rams).
This is about 3,000 head lower than the peak kill in 2016 but another big kill is expected this week. A number of factories have not been accepting ewes in recent days, instead opting to concentrate on maximising lamb throughput ahead of the Eid al-Adha festival, which begins tomorrow.
As such, there is expected to be a lift in the number of ewes in the market in the coming week. Factories are anticipating this and ICM has reduced its base ewe quote by 10c/kg to €2.50/kg with the remaining plants on €2.60/kg with the exception of Ballon Meats at €2.70/kg.
NI trade pressure
Northern prices have also come under pressure, with numbers also peaking. Factories have reduced base quotes by 5c/kg to 10p/kg and are quoting £4.00/kg.
This is the equivalent of €4.56/kg including VAT, with sterling at 92.5p to the euro.
Reports suggest plants are less willing to do deals above quotes, with prices of £4.10/kg (€4.67/kg including VAT) at the higher end. The weaker sterling exchange rate is increasing the attractiveness of lambs to southern plants, with 9,967 sheep travelling south for direct slaughter last week.
IFA
IFA sheep chair John Lynskey said: “Farmers are negotiating €5.00/kg this week but I am very concerned with some of the negative messages from factories trying to talk down the price. Farmers are very annoyed and angry over the increase in Northern lambs being used to pull prices back to local suppliers.”
British beef prices have also eased and are averaging around £4.25/kg to £4.30/kg (€4.84/kg to 4.89/kg), with weaker sterling increasing the competitiveness of UK exports.
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