Lamb supplies will be tighter due to ‘big kill’

THE situation with factory sheep prices is becoming a little trickier to call as the gradual seasonal decline in prices usually starts around this time.

I got the impression from talking to people in the trade that maybe just for this week prices are in a state of flux.

It’s always a little harder to call the price when coming out of a bank holiday as farmers would last week have factored the long weekend into their selling schedule.

While prices are largely unchanged, some plants were trying yesterday to quote 10c/ kg less than last week, and they appeared unsure about what numbers would be like as the week went on.

Factory price ranges are from €5.30 plus 10c/kg quality assurance payment at Kildare Chilling to €5.20 at Dawn Ballyhaunis and the two ICM plants which is a 10c/kg less than last week.

It’s a €5.50kg all-in price from Moyvalley while Kepak Athleague are in the mid-range at €5.30 plus 6c/kg bonus, but lead the pack with their €2.50/ kg plus bonuses for ewes.

The argument put forward by one of the major players in relation to this week’s price pull is the weakness of this week’s order book.

“Last week’s big kill has left this week’s order book looking very thin. We have to sell them as well as buy them you know”.

I understand that one factory got rapped hard across the knuckles when they offered a producer group in the north of the country a €5.20/kg base price last weekend for lamb to be delivered today.

John Lynskey of IFA said that with a big kill last week, lamb supplies will be tighter and he expects prices to be in the €5.40-5.50/kg range.

ICSA’s John Brooks was working off a base of €5.50/kg with possibly more to be had.

His price for ewes of €2.502.80 is 20-40c/kg stronger than the factories range of €2.402.60/kg all in.

Bord Bia’s figures on sheep factory throughput for the week ending May 27, shows that at 48,000, numbers are up on the corresponding week last year by 6pc or 2,500/hd.

In England and Wales the SQQ live price for lamb last week was making the equivalent of around €5.63/kg dead weight.

In France the very unseasonal bad weather has affected the trade in that deliveries are in some cases impossible and in others badly disrupted.

Plentiful supplies of Lacaune lamb have now begun to appear while on the retail side there were numerous promotions for Halal lamb last week.