The first week in 2020 has seen an uplift in prices for sheep across some meat processing facilities, with factories paying up to 530c/kg.
In January 2019, the majority of meat processing facilities were starting negotiations for lambs at 480c/kg. Fast forward to now, and farmers are receiving base quotes of up to 520c/kg.
This week, Kildare Chilling is the biggest mover in terms of price – offering 10c/kg more compared to last week.
Furthermore, base quotes have increased by as much as 90c/kg since the end of November.
Farmers involved in producer groups are securing prices between 530c/kg and 540c/kg (up to a carcass weight of 22.5kg).
According to the Teagasc Review and Outlook for 2020, sheep prices are predicted to remain unchanged for the coming year. However, since the turn of the year, farmers have seen an increase in the price they are being paid for their lambs.
Currently, farmers are securing prices of between 505c/kg and 530c/kg including quality assurance (QA) bonuses.
As of now, farmers are securing returns of between €113/head and €119/head including QA bonuses for lambs that are killing out at a 22.5kg carcass weight.
Quotes
This week, Kildare Chilling (Monday quote) is offering a base price of 520c/kg + 10c/kg QA – up 10c/kg on last week (payable up to a carcass of 22.5kg).
Irish Country Meats (Monday quote) is offering a base price of 495c/kg + 10c/kg – no change on last week (payable up to a carcass of 22.5kg).
And, finally, Kepak Athleague (Monday quote) is offering a base price of 490c/kg + 15c/kg – down 10c/kg on last week (payable up to a carcass of 22.5kg).
Overall, when the QA is factored in, this leaves quotes at 505-530c/kg.
In addition, cast ewes are making 270-280c/kg in sheep processing plants.
Spring lamb quotes:
- Kepak Athleague: 490c/kg + 15c/kg QA;
- Kildare Chilling: 520c/kg + 10c/kg QA;
- Irish Country Meats: 495c/kg + 10c/kg QA.
Cast ewe quotes:
- Kepak Athleague: 270c/kg;
- Kildare Chilling: 270c/kg + 10c/kg QA;
- Irish Country Meats: 280c/kg.
Throughput
During the week ending Sunday, December 29, the number of spring lambs processed decreased by 27,973 head and amounted to 27,710 head.
Hogget supplies at Department of Agriculture approved sheep export plants stood at 8 – a decrease of 49 head – for the week ending December 29.
Week-on-week sheep kill supplies (week ending December 29):
- Hoggets: 8 head (-49 or -85%);
- Spring lambs: 27,710 head (-27,973 or -50%);
- Ewes and rams: 1,581 head (-6,392 or -80%);
- Total: 29,300 head (-35,471 or 54.7%).
In addition, cast (ewe) slaughterings increased by 6,392 and amounted to 1,581.
Furthermore, overall supplies increased by 35,471 head during the week ending December 29.
Cumulative figures for 2019 reached 2,782,661 – down over 204,800 head on the corresponding figure of 2,987,534 for 2018.