Prices in the sheep trade this week (beginning Tuesday, June 4) have received a significant cut from the latest offerings from factories for hogget and spring lamb supplies.
During what is a shorter processing week on account of the bank holiday Monday, the notable updates in the sheep trade are that Kildare Chilling are not quoting for spring lambs or hoggets, and Irish Country Meats (ICM) have cut their offerings for hoggets by €1/kg and spring lambs by 50c/kg.
A year ago, base prices for hoggets stood from €6.80-7.00/kg, while base prices for spring lambs ranged from €7.40-7.60/kg.
This week, hogget base prices are standing at between €7.75-8/kg, with spring lamb base prices are ranging from €8.80-8.85/kg.
Factories have been urged to be “responsible in their pricing of lambs and hoggets” in order to not undermine the sheep trade by the Irish Farmers’ Association (IFA).
Adrian Gallagher, IFA sheep chair, said factories are trying to drag the price down “in a manner that’s way ahead of the direction of travel of prices in our key markets over the past few weeks”.
Gallagher said that spring lamb numbers are “still tight on the ground” and buying is also taking place for the Eid ul – Adha festival, one of the most important festivals in the Muslim calendar, later this month.
In the above graph, it can be seen that around June, sheepmeat prices decrease significantly each year according to the data from Bord Bia.
“The level of cuts attempted by factories runs the risk of undermining the trade in our key export markets and sets the sector on a very dangerous path for the remainder of the year,” the IFA sheep chair warned.
Gallagher said the current approach by factories “is unacceptable and must stop” and called on them to “stand firm in the market place to maintain prices” for farmers.
Spring lamb
Irish Country Meats (ICM) is quoting €8.80/kg plus a 20c/kg QA bonus for spring lambs up to 21.5kgs, a total of €9/kg, and a drop of 50c/kg.
Kildare Chilling is not quoting for spring lambs today.
Other outlets are offering €8.85/kg plus a 15c/kg QA bonus up to 20.5kgs, a total of €9/kg for a spring lamb.
Hogget
ICM is quoting €8/kg, plus a 20c/kg QA bonus, which is a total of €8.20/kg for a hogget, and a reduction in price of €1/kg since last week.
Kildare Chilling has said it is not quoting for hoggets today.
Other outlets are paying €7.75/kg plus a 15c QA bonus up to 23.5kg, a total of €7.90/kg.
Cull ewes
For ewes between 35kg to 43kg, Kildare Chilling has offered farmers €4/kg plus a 10c QA bonus, a total of €4.10/kg for a better type ewe.
ICM is currently offering €4.20/kg for heavy ewes, while other outlets are offering €4/kg plus a 10c QA bonus for a ewe over 30kg, a total of €4.10/kg.