There have been modest price increases in the sheep trade this week from some factories, that have raised their price offerings for spring lambs by 5-10c/kg.
There is a wider gap in the differences between the highest and lowest base prices this week, as they range from €6.25/kg to €6.50/kg, when compared to the base prices during the same week in 2022 that were at €6.35/kg up to €6.40/kg.
Base prices for cull ewes 12 months ago however were ranging from €3.00/kg up to €3.20/kg, a stark comparison between the base prices for cull ewes this week, which range from €2.50/kg to €2.90/kg.
A modest increase in lamb prices is forecast for 2024, as specified in the Teagasc Outlook report for 2024 published last week.
This increase, coupled with a slight easing in costs, will result in higher margins on sheep farms in 2024, according to Teagasc.
Payments to farmers participating in the Sheep Improvement Scheme (SIS) will continue to boost the value of gross output and margins per hectare on sheep farms in 2024, as the additional €8 per ewe differential was factored into the forecast for 2024.
The average income on sheep farms in 2024 is forecast to increase by 8% on 2023, bringing the average income to about €18,300 (up from €17,000 this year).
Spring lamb prices
Kildare Chilling has lifted its offering for lambs at the start of this week by 10c/kg, and provided a quote for farmers today (Monday, December 4) only, of €6.50/kg, plus a 10c quality assured (QA) bonus up to 22kg for spring lambs, a total of €6.60/kg.
They are offering €5.00/kg for light lambs under 16kg, or those that are grading from an O2 to P1.
This week, Irish Country Meats (ICM) has maintained its price and is offering €6.25/kg plus a 20c QA bonus, bringing its offering to €6.45/kg up to a 22.5kg carcass weight for a spring lamb.
Other outlets have offered a price of €6.35/kg plus a 15c/kg QA bonus, a total of €6.50/kg, and a 5c/kg increase since last week.
Cull ewe prices
Cull ewe prices remain unchanged from Kildare Chilling this week has maintained its quotes for cull ewes, while the price differed depending on the weight of the ewe.
In its quotes for Monday only, the outlet offered €2.60/kg plus a 10c QA bonus for ewes from 23kg to 35kg.
For ewes between 35kg to 43kg, Kildare Chilling offered farmers €2.90/kg plus a 10c QA bonus, a total of €3.00/kg for a better type ewe.
Ewes under 23kg will fetch a price of €2.00/kg from Kildare Chilling.
ICM is offering €2.60/kg for a ewe up to a 45kg carcass weight, the price remaining the same as last week, while other outlets are offering €2.50/kg for a cull ewe.