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The sheep trade has come under additional pressure, with quotes for today falling by 20c/kg to 30c/kg on last week’s levels.
The two ICM plants have reduced to the lowest base quote of €4.80/kg, citing poor market demand in export markets and a weakening in sterling affecting the trade.
Reduced base
Dawn Ballyhaunis and Kepak have reduced their base quotes to €5.00/kg, while Kildare Chilling is not quoting, but is reported as offering similar.
Farmers selling lambs at the start of the week were securing €5.20/kg to €5.35/kg up to Wednesday’s heavy price cuts.
Farmers trading lambs for today are, in the main, securing €5.10/kg to €5.15/kg, with some frequent sellers and groups securing higher by means of bonus payments.
Some farmers in groups supplying ICM have reacted angrily to the price cut, saying that it is undermining the ethos of groups with farmers not rewarded for delivering lambs to tight specifications.
Latest cuts
The latest cuts have seen 50c/kg or over €10 knocked off the value of a lamb in less than three weeks and, with it, has severely hit farmer optimism, which up to then was boosted by the trade holding above previous year’s levels.
IFA national sheep chair John Lynskey said: “The price cuts of the last 10 days have gone way too far and are inflicting unnecessary income pressure.
“Some plants have overstepped the mark by forcing down quotes excessively to pull back the trade. Carcase weights need to move up to 22kg immediately.”
Northern trade
Northern plants have reduced quotes by 15p/kg on last week’s levels, with £4.10/kg offered as a base quote.
Sterling has held above 89p to the euro in recent days, which, at Wednesday afternoon’s rate of 89.3p, translates to an equivalent of €4.84/kg.
Regular sellers are securing 5p/kg to 10p/kg higher, with agents purchasing for southern plants remaining active.
The number of lambs imported south for direct slaughter in the last week reverted upwards to 7,743 last week after low activity in the previous week.
Kill-out and fat cover
A number of plants have pointed to lambs killing out poorly and short of flesh. They advise farmers who have recently weaned to take account of this when drafting and to select lambs on a combination of weight and fat cover.
The ewe trade in comparison is holding firm, with quotes of €2.60/kg to €2.70/kg, while prices towards the top of the market are rising to €2.80/kg to €2.90/kg.
The live trade is also holding firm and remains a good outlet for farmers trading small numbers and struggling to secure higher prices.
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