Sheep rally by 10-15c/kg despite worries over Brexit

LAST week the expectation was that Britain would vote to stay, and sheep price was on its traditional summer downturn following a three week slide.

The situation this week is very different. Britain is gone from Europe and Irish sheep prices have risen.

Factory quotes for lamb are up 10-15c/kg from €4.80/ kg last week, with both ICM plants at Camolin and Navan as well as Kildare Chilling and Dawn Ballyhaunis on €4.90/ kg, while Kepak Athleague is on €4.95/kg.

However, prices on the ground are €5.10-5.20/kg for lamb, with talk of €5.25/kg possible on weights up to 21.5kg according to IFA’s John Lynskey.

The official quotes for ewes remain unchanged at €2.302.50/kg, with the actual price being paid varying from €2.702.80/kg, with up to €3.00/kg still available for better fleshed ewes under 30kg according to ICSA’s John Brooks.

Like the result of the referendum sheep prices are tied to numbers and the numbers right now are tight.

In the marts the rise in price is anything from €2-3/hd for lamb, while store lambs have driven on more as cattle farmers as well as traditional sheep men have moved to buy stock to deal with surplus grass. This trade is a growing trend on beef farms according to John Brooks and is being handled very successfully to the point where its position in seasonal grazing rotations is becoming an annual fixture.

The factory position remains constant, with the mantra being that trading conditions are difficult. Wholesalers are standing off as they consider the implications of a weaker pound.

One factory man told me that there was an element of gamesmanship in the trade from their customers at the minute, which was making it hard for processors to judge the actual market. But surely processors are well able for a bit of brinkmanship, given they’re prone to a bit of it themselves?

Most plants admit that supplies are slower this week. As the situation in the UK becomes clearer they will be better able to plan a future strategy for dealing with the effect any serious devaluation of sterling may have on supplies going to the Continent.

As it is sterling is not much below where it was in relation to the euro two months ago.

Bord Bia report that French markets have suffered with poor weather and cheaper lamb from Britain, along with a 6pc increase in the domestic kill.