Factory lamb prices fall back as supplies remain strong

Prices being quoted for lambs this week have fallen back again with factories reporting an increase in supplies.

Processors are generally offering €4.80/kg for lambs this week despite farmer attempts to resist the price drop.

It comes as last week the deadweight sheep trade also saw some downward movement due to reduced demand particularly in our key export markets coupled with stronger supplies.

Last week base quotes for lamb were generally making around €5.00/kg to €5.10/kg while prices for culled ewes were generally making around €2.30/kg.

Supplies

According to the Department of Agriculture’s latest sheep kill data for the week ending June 12, new season lamb throughput declined by 9.7% last week compared to the week before.

However, it was a shorter week as a result of the bank holiday. So far this year, cumulative supplies are up 7% on year previous levels at 1.04 million head.

Almost 44,000 spring lambs were slaughtered at Department approved sheepmeat export plants, down by 4,740 head compared to the week before.

Like spring lambs, there was also a fall in ewe and ram throughput, which declined by 12% or 1,104 head compared to the week earlier.

Meanwhile, the number of hoggets slaughtered has also posted another decrease.

Markets

 

In Britain, Bord Bia says some ease in demand was reported. The SQQ live price for lamb in England and Wales was making the equivalent of around €4.87/kg during the week.

In terms of net production, lamb production was down 4% for the month of May yet offset by a 19% rise in adult sheep throughputs leaving overall sheepemeat production 2% higher compared to 2015 levels.

In France, Bord Bia says little activity in the market has been seen this week with no extra consumption reported due to Ramadan.

It says large quantities of UK and lighter Spanish lamb coupled with domestic Lacaune lamb remain on the market while poor weather is reducing demand for barbeque cuts and floods are continuing to disrupt deliveries.

The main promotions were centred on forequarter lamb, chops and legs of lamb with numerous promotions on halal and imported products reported.

Bord Bia says grade 1 lamb in Rungis was making around €5.46/kg (DW incl VAT) during the week.