Sheep trade: Tight supplies making it difficult for factories to pull prices

A combination of tight supplies, as well as a very strong demand, is proving it difficult for factories to pull lamb prices to any great extent.

During the latter part of last week, factories moved to ease quotes, but coming into this week, prices of up to €7.40-7.50/kg continue to be secured, with reports of even up to €7.60/kg being got.

Looking at what factories are offering, once again its only Kildare Chilling who has gone on the record for Monday with a quote for lambs and ewes.

Kildare is on a base price of €7.10/kg plus a 10c/kg quality assurance bonus for lambs – back 30c/kg from this time last week – while it’s quoting €3.30/kg plus a 10c/kg QA bonus for ewes.

In terms of what’s on offer from other meat processing plants for lambs, reports indicate quotes around the €7.00/kg mark. The general run of prices for lambs are ranging from €7.10-7.50/kg.

Also Read: ‘Extremely tight supplies’ driving lamb trade

Going by the trade at marts on Monday, it’s only positives that can be taken away.

Agriland was at Athenry Mart yesterday (Monday 14) which saw a very lively trade for all types of lambs, with the factory lambs of most relevance proving to be in strong demand from factory agents.

This pen of 17 lambs weighing 46kg sold for €154/head at Athenry Mart yesterday (Monday, June 14)

Supplies are tight, and with hoggets now gone and with many factories switching over fully to lambs, it will make it difficult for factories to pull prices to any great extent – as they attempt to chase up numbers.

The only negative that can be seen currently is the reportedly large number of light lambs being brought to the factory.

The poor weather we have been witnessing this year has meant the number of finished lambs coming on stream is much slower, with grass growth rates only really kicking on over the past fortnight or so.

The ewe trade is holding strong, with prices ranging from €3.20/kg up to €3.50/kg. Again, the mart trade is going strong for fleshed ewes – with a good demand similar to the lambs from factory agents – for suitable ewes.

‘Tight supplies aiding the trade’

Speaking to Agriland yesterday about the sheep trade at present, the sheep chair of the Irish Cattle and Sheep Farmers’ Association (ICSA), Sean McNamara said: “The trade is holding firm, with prices for lambs topping €7.40-7.50/kg.

“The prices we are getting for lambs, at this time of the year, there’s no way you can complain.

“The one thing I would ask is for farmers not to send light lambs to the factory. I’m hearing of light lambs being sent to the factory and that just can’t happen.

“I would urge farmers not to panic and just to go to the mart instead with their lambs if they are light. There’s a good trade for the store lambs coming on stream so that’s the best place for them.

“The ewe trade is going strong, with again top prices of €3.30-3.50/kg being secured.

“Tight supplies coupled with a strong demand is helping to keep prices strong.”