Increased demand for lamb from the food services sector – as normal opening hours return – should drive farmers prices for lambs on an upwards trend, according to the Irish Farmers’ Association (IFA).
Sean Dennehy, the association’s sheep chairperson, said this morning (Monday, January 24) that the food services sector is a “key outlet” for lamb.
“As society returns to more normal social engagements, demand for lamb will increase,” he noted.
Furthermore, Dennehy highlighted that the reduction in Covid-19 case numbers and the changes in public health advice will ease the staffing issues at processor level.
“Lamb numbers are extremely tight. With good weather, farmers are under no pressure to sell and factories are struggling to get supplies to meet the market demand,” he said.
According to Dennehy, lamb numbers in factories are low today, with €6.90/kg “freely available”.
He also said that some deals of €7.00/kg or more were reported “as factories struggle to fill orders.”
“The cuts applied for overweight lambs by factories are not necessary and should stop as processing capacity and domestic demand improves.
“The mart trade for these lambs is much better than what factories are offering and farmers should consider the most appropriate outlet for the lambs they have,” the IFA sheep chair urged.
“Lamb numbers are tight, market demand is strong – and improving – and farmers should only sell lambs as they become fit in a rising market,” Dennehy stressed.
He also noted that prices for cull ewes are sitting at around €3.20/kg to €3.50/kg in general, with some prices exceeding this range.
The tight numbers for lambs come as the numbers of farmers passing through the marts goes up – thanks to the lifting of Covid-19 restrictions around social distancing and limits on numbers.
Speaking earlier today, Minister for Agriculture, Food and the Marine McConalogue paid tribute to the efforts of mart staff and farmers in keeping marts operational throughout the pandemic.
“This is a great day for our network of marts across the country.
“Buyers can now return to the ring without the previous limits on numbers, while online sales can continue as part of a ‘blended’ approach,” the minister noted.