Sheep Trends: hoggets suffer another 10c/kg cut

Hoggets prices have been hit with another 10c/kg cut this week, bringing cumulative cuts in recent weeks to in excess of 50c/kg. This is not forgetting the 1kg carcase weight limit cut.

The latest price reduction sees base quotes fall to €8.50/kg to €8.60/kg, with opening prices for quality assured hoggets in the region of €8.60/kg to €8.70/kg and €8.80/kg in Ballon Meats.

Groups and regular sellers continue to secure returns of €8.80/kg, with few reports of prices exceeding this range.

There are differing reports on demand in the system. Some plants are working to a lead-in time of three to four days, with reports of producers facing longer delays.

A number of plants have also moved to bring in potential cuts of 50c/kg for hoggets killing at carcase weights exceeding 25kg. This will be influenced by the number of sheep falling into this bracket and the degree to which hoggets exceed this weight point.

In contrast, there are reports of some producers getting sheep booked in quickly, with some such cases including hoggets which are likely to kill at lighter carcase weights.

Throughput last week was recorded at 43,556 head, equating to a reduction of 4,346. This includes over 40,000 hoggets and 3,440 ewes.

Ewe supplies are tight and this is fueling higher demand. This is not reflected in ewe quotes, but producers should note that agents and regular sellers are securing well above the prices quoted.

Most plants continue to offer an opening quote of €5/kg, but a growing number of ewes are trading from €5.20/kg to €5.40/kg.

Plants and abattoirs specialising in the ewe trade are operating at quotes above €5.50/kg, with Ballon Meats up 20c/kg to €5.70/kg and prices reported at the top end of the market rising to €5.80/kg to €6/kg.

The mart trade is flying (see mart comment below) and producers having difficulty negotiating on price should weigh up their most lucrative outlet.

There are no quotes yet for spring lambs, with Easter Sunday falling later this year 20 April. The trade for small numbers of lambs which have appeared in mart sales over the last week have been reported as disappointing, with prices in line with hogget returns.

Northern Ireland

In Northern Ireland, Dunbia has reduced its base quote by 10p/kg and matched Linden Foods at £6.80/kg. This is the equivalent of €8.07/kg at an exchange rate of 84.2p to the euro.

Groups and regular sellers are securing 10p/kg to 15p/kg higher, with reports indicating producers with greater negotiating power have fallen below the £7/kg mark.

Prices in Britain have not fallen to the same extent as in NI or Ireland in recent weeks. The Agriculture Horticulture Development Board reports prices for week ending 15 March reducing by just 0.2p/kg on the previous week at £7.45/kg.