Quotes edge upwards by 5-10c/kg

WILL sheep farmers today receive a Valentine’s card from their local factory boss with the message “Sorry it was all a misunderstanding, we never meant to go below €5/kg. Love always. Your local sheep factory boss”.

Maybe, seems to be the answer as a tightening in supply sees quotes edge upwards by about 5-10c/kg.

While no one is actively mentioning €5/kg, the indications are that the price is headed that way. Supporting this are a raft of price increases, which this week sees Kildare Chilling, Kepak and the two ICM plants and Moyvalley effectively close in on €4.70/kg when various bonuses are included.

However, leading the pack is Kildare Chilling as they add 5c/ kg to last week’s base of €4.60 to sit on €4.65 plus a bonus of 10c/kg. This give them an all in official quote of €4.75/kg - once all the weight and quality boxes are ticked. Bringing up the rear this week is Dawn Ballyhaunais. Despite quoting a flat of just €4.60/kg, no shrinking violet is suspected when it comes to taking on the other main players when the need arises.

So while none of the factories are exactly Prince Charming to the farmers Cinderella they are at last appearing to act a bit more gentlemanly.

The situation in relation to cull ewes is that official quotes as per the table below remain stuck at €2.50/kg across the board, with both IFA and ICSA reporting on the ground prices of €2.60-2.80/kg - with western plants reported as the most eager for supplies.

Looking at the trade outside of the factory gate ICSA’s John Brooks reflected the optimism of some mart managers.

“Factories have become easier to deal with. The weight limit that was touted by some factories as a line in sand a few weeks ago at 22.5kgs has edged up in some plants to 23kgs.”

He also highlighted that some factories are killing bigger numbers than normal.