Irish Farmers’ Association (IFA) sheep chairman, Sean Dennehy, has said that recent market conditions for sheep trade “look set to continue” in 2022.

Considering the current Covid-19 situation, the IFA sheep chairman is optimistic that the “anticipated relaxation” of pandemic-related controls affecting the food service sector in the next weeks, will enhance lamb demand in domestic and export markets.

“Supplies will remain tight and farmers should move lambs as they become fit to maximise returns and maintain bargaining power with factories,” Dennehy said.

Foreseeing trade over the next few months, Dennehy said supply and demand are predicted to be balanced, with Easter and Ramadan being key drivers of trade in April.

Global markets

Dennehy stated that sheep meat consumption in China increased by 9% over the last four years and demand will continue to fuel global trade, with New Zealand and Australia focusing on supplying the market.

New Zealand’s shift to focus on the Chinese market has led to the country only filling 46% of their EU quota which increases the opportunity for Irish exports, the IFA sheep chairman said.

Dennehy added that ongoing issues with UK access to the EU market “will create openings for Irish lamb”.

Lamb price

Despite lower quotes, lambs are currently making €6.90/kg to €7.10/kg, according to the IFA.

Prices range across meat processing plants with top market producers now gaining returns of €7.00/kg and few returns of €7.10/kg also being reported.

Considering factories’ recent approach on price and weight penalties, Dennehy described the approach as “short sighted and unnecessary”.

“Farmers feeding lambs ‘ad lib’ should watch weights to avoid penalties,” he added.

In-spec lamb processors continue to note a large number of out of spec lambs coming through the system and if not already implemented, factories are looking at penalising such lambs (25kg + carcass weight), according to the farm organisation.

Kildare Chilling is offering €145/head for 25kg+ carcass weight lambs/hoggets which is back €5/head on what it was offering last week, Dennehy said.

A western-based plant has said that if the situation stays the same for the rest of this week, that it will be looking at offering reduced prices for out of spec lambs.