Sheep trade: Slide in prices comes to a halt, as factories change their tune

The slide that has been sheep prices looks to have come to a halt, with factories this week showing an increased appetite for lambs, as prices improve from the start of last week.

Base quotes for lambs on Monday were ranging from €6.10-6.20/kg – an improvement of 10c/kg from last week.

Kildare Chilling is out in front with a base price of €6.20/kg, plus a 10c/kg quality assurance (QA) bonus for lambs.

Irish Country Meats (ICM) is back on the table this week, quoting €6.10/kg plus a 10c/kg QA bonus for lambs.

Meanwhile, Kepak Athleague remains off the table but is well in the mix in terms of what other processors are offering for lambs.

Those trading at the top end of the market are securing deals of €6.40-6.50/kg going by what Agriland has been told, with prices of up to €6.60/kg apparently been secured also.

With the Eid al-Adha festival on the horizon, factories will be looking to build up supplies, with one processor saying killing for the upcoming festival could start by the end of the week.

The ewe trade remains strong, with quotes in plants hitting €3.30/kg for Monday and top prices ranging from €3.40/kg up to €3.60/kg.

Farm orgs vent their frustration

Farm organisations have been vocal of late, over the cuts in lamb prices that have been seen over the last few weeks and have cited that factories are actively seeking lambs to meet the increased demand for the Eid al-Adha festival.

Sean Dennehy of the Irish Farmers’ Association (IFA) said that deals of €6.40-6.60/kg are being offered for lambs, as farmers with suitable lambs are rightly holding out for these higher prices.

He added that factories are offering deals on transport and on weights to secure lambs and that strong market demand and tight supplies are forcing the factories hand to increase prices.

Similarly, Sean McNamara of the Irish Cattle and Sheep Farmers’ Association (ICSA) said that prices have firmed up this week, with €6.50/kg available for lambs.

He added: “Factories were threatening to pull prices further but with strong market conditions and a tight supply of lambs, they have had to change their tune.

“The price cuts over the last few weeks – up to €40/head – have been unjustifiable.

“With the Eid al-Adha festival coming up and supplies tight, factories have been forced to re-think their strategy and hopefully we will see prices improve once again.”