Sheep trends: top quote rises to €4.80/kg

Kildare Chilling’s base quote of €4.80/kg plus its 10c/kg top-up for quality assured (QA) lamb has set a new tone for the sheep trade. Ballon Meats has jumped by a similar level and is on an all-in quote of €4.80/kg.

Most other plants have also recoded an increase, with Kepak Athleague a short distance back with its base quote of €4.75/kg plus its 5c/kg QA top-up increasing 5c/kg on last week’s levels.

The two ICM plants are staying in touch and have lifted their base quote by 10c/kg to a base of €4.70/kg, plus a possible 10c/kg top-up for QA lambs, while Moyvalley is unchanged at €4.70/kg and Dawn Ballyhaunis is not quoting.

The increase in quotes sets a new price level, with producer groups and large suppliers working off a base price plus bonus payment mechanism seeing returns now exceed €5.00/kg. It also lifts prices paid to individual sellers by 10c/kg to 15c/kg, with lambs now moving at a minimum price of €4.70/kg to €4.75/kg and exceeding €100 for a 21.5kg to 22kg carcase.

Producers handling QA lambs are achieving returns of €4.80/kg to €4.90/kg, while those handling large numbers will now be pushing to secure higher returns of €4.95/kg to €5.00/kg.

The improvement in the trade is being helped by firm demand. Last week’s kill recorded an increase of 12,651 head to total 66,638, but it should be noted that the previous week had one less day of processing.

The higher kill was also helped by the number of sheep imported from Northern Ireland increasing by 2,941 and reaching 10,888.

Northern plants have actually reduced their base quote by 5p/kg to £3.70/kg and £3.75/kg respectively, which at yesterday’s weaker sterling exchange rate of 89.9p equates to just €4.34/kg to €4.40/kg. The lower price comes in response to an increase in carcase weight limits from 21kg to 22kg.

Reports show prices of £3.80/kg to £3.85/kg (€4.45/kg to €4.51/kg) paid to farmers handling significant numbers of lambs, with 5p/kg higher paid at the top of the market.

Ewe trade

The ewe trade is gaining momentum, with Kildare also staying ahead with its 10c/kg rise to €2.60/kg and 10c/kg QA bonus separating them from Ballon’s quote of €2.60/kg, while Kepak has lifted 5c to €2.45/kg and ICM is up 10c/kg to €2.50/kg.

The strengthening in prices is reflected in mart sales, with dealers becoming more active for heavy fleshed ewes.

Sellers with large-framed ewes but lower bargaining power should check paid carcase weights (40kg to 43kg), with the mart possibly a better sales avenue.

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