Sheep price update: quotes up 10c/kg as numbers keep declining

The supply-demand balance continues to veer in farmers' favour, with demand outstripping numbers in the market.

Prices are slow to edge upwards, with faster momentum in Britain and Northern Ireland.

Base quotes in factories in Ireland have increased by 10c/kg, but official quotes are hard to come by.

The two Irish Country Meats (ICM) plants and Ballon Meats remain the only factories quoting consistently.

ICM plants are offering a base price of €7.80/kg plus their 20c/kg quality assurance payment for hoggets.

This leaves the majority of hoggets trading from producer groups and sellers with stronger negotiating power moving in the region of €8.10/kg. Reports indicate Kildare Chilling is offering a similar price to regular suppliers.

Strong links

Sellers with strong links to factories and supplying large numbers are negotiating upwards of €8.20/kg.

Agents also appear to be trying to get a handle on potential numbers in the market ahead of the ending of next week’s Islamic religious festival of Ramadan.

This festival is inserting much more life into the British trade where there is a sizeable Muslim population.

Prices reported vary anywhere from £7.60/kg to £8/kg at the start of this week or the equivalent of €8.78/kg to €9.24/kg at Monday evening’s exchange rate of 86.4p to the euro.

Quotes in Northern Ireland have increased by 10p/kg, with a growing number of sellers negotiating in excess of £7/kg (€8.09/kg).

The wider differential in price between Northern Ireland and Britain and the fact that prices in Northern Ireland have moved above those south of the border is fuelling higher live exports from Northern Ireland to Britain.

Factories are having to look after agents purchasing in marts and sellers handling high numbers to ward off interest and close deals.

This is giving rise to prices at the top end of the market from £7.20/kg to £7.35/kg-plus (€8.48/kg).