It looks like there won’t be any upward movement in prices anytime soon, as processors say Covid-19 continues to make “market conditions difficult”.
Normal production in some meat processing plants also continues to be disrupted due to Covid-19.
As we head towards the middle of May, the number of hoggets being processed at factories continues to decline, which has seen some plants switch over completely from hoggets to spring lambs.
This week, hogget quotes have taken another hit, with both Irish Country Meats (ICM) and Kildare Chilling wiping 10c/kg and 20c/kg respectively off hogget quotes.
A source from a meat processing plant said: “Farmers seem to be drafting lambs as soon as they come fit. Some farmers obviously have held out bringing lambs to the factory after the price drop two weeks ago. However, in general, we are getting a steady supply of lambs in from farmers.”
On the other hand, a source from another factory said that spring lamb supplies were tight.
Despite contrasting stories in terms of the supply of spring lambs, factories across the board noted that hogget supplies are “drying up” at this stage.
In terms of cast ewes, there is a significant variation in quotes being offered by meat processing plants. Factory prices for cast ewes have gradually decreased since the outbreak of Covid-19, with up to 70c/kg, in some cases, being wiped off base quotes in the space of two months.
Quotes
Kepak Athleague was not quoting for spring lambs, hoggets and cast ewes on Monday, May 11.
Taking a look at the quotes on offer, ICM (Monday quote) is offering a base price of 590c/kg – up to a carcass weight of 20kg – for spring lambs.
Kildare Chilling (Monday quote) is offering a base price of 610c/kg for spring lambs up to a carcass weight of 20kg.
When quality assurance (QA) bonuses are factored in, this leaves quotes at 600-620c/kg for spring lambs.
Taking a look at the quotes for hoggets, ICM (Monday quote) is offering a base price of 530c/kg, while Kildare Chilling (Monday quote) is also offering a base price of 540c/kg.
When quality assurance (QA) bonuses are factored in, this leaves quotes at 540-550c/kg for hoggets.
Turning to the cast ewe quotes, Kildare Chilling (Monday quote) is offering a base price of 270c/kg. ICM (Monday quote) is offering 240c/kg.
When QA bonuses are taken into account, this leaves quotes at 240-280c/kg.
Spring lamb quotes:
- ICM: 590c/kg + 10c/kg QA;
- Kildare Chilling: 610c/kg + 10c/kg QA.
Hogget quotes:
- ICM: 530c/kg + 10c/kg QA;
- Kildare Chilling: 540c/kg + 10c/kg QA.
Cast ewe quotes:
- ICM: 240c/kg;
- Kildare Chilling: 270c/kg + 10c/kg QA.
Throughput
During the week ending May 3, the number of hoggets processed decreased by 11,829 head and amounted to 25,365 head.
Furthermore, the number of spring lambs processed amounted to 12,626 for the week ending May 3.
Cast (ewe and ram) supplies at the Department of Agriculture approved sheep export plants stood at 5,897 head – a decrease of 368 head – for the week ending May 3.
Week-on-week sheep kill supplies (week ending May 3):
- Hoggets: 25,365 head (-11,829 or -31.1%);
- Spring lambs: 12,626 head (+4,369 or +52%);
- Ewes and rams: 5,897 head (-368 or -5.87%);
- Total: 43,890 head (-7,830 or -15%).
Moreover, overall supplies decreased by 7,830 head during the week ending May 3 and amounted to 43,890 head.
Data source: Department of Agriculture
Cumulative figures for the year to date have reached 878,279 head, which is an increase of 57,758 head compared to the 2019 figure of 820,521 head.
Year-on-year sheep kill changes (week ending May 3):
- Hoggets: 741,420 head (+78,823 or +12%);
- Spring lambs: 31,866 head (-552 or -2%);
- Ewes and rams: 104,969 head (-20,527 or -16%);
- Total: 878,279 head (+57,758 or +7%).