The Irish Farmers’ Association (IFA) has criticised what it claims are moves by meat processors to weaken lamb prices, which it calls “unjustified”.
According to Sean Dennehy, the IFA’s sheep chairperson, market conditions for lamb are favourable at the moment, with factories “at odds” with this.
He noted that prices are rising in the UK and French markets on the run into the Christmas trade on the back of tightening supplies.
“The numbers of suitable lambs that factories need for the Christmas trade are not available and this approach is a crude attempt to panic farmers into selling lambs.
“Prices in the UK for finished sheep have been high and are rising again recently. Throughput at UK abattoirs is down 11% year-on-year and market reports indicate supplies will remain tight,” Dennehy argued.
He continued: “Sheep prices in France have pushed on again. Spain is an important supplier to France, but we are now past the annual peak for Spanish trade with France, and so volumes are now at a lower level.”
Dennehy says that farmgate prices in Spain have risen, which is also strengthening trade with France and, by extension, prices for Irish lamb.
“Factories are offering €7.30/kg and deals to 23kgs to secure lambs, but are meeting very strong resistance from farmers. Cull ewes are making €3.10/kg to €3.30/kg in general, with higher prices available.”
Reject ‘attempts’ to lower lamb prices
Dennehy called on farmers to only sell lambs as they become fit.
Deals to 23kg are on offer and, with a very strong mart trade for store and finished lambs, the current attempts to lower should be rejected.
Reports emerged this week of factories trying to exert downward pressure on prices.
Quotes were once again scarce on Monday (November 22) with no factories offering an official quote for lambs.
This was unusual, especially for one or two plants who generally offer an official quote even when the rest don’t. However, on Monday this was not the case, and this generally is a sign of when factories are looking to knock prices.