Prices rise by up to 15c/kg as supply tightens
NUMBERS of lamb headed for the factory gates have tightened, with prices edging upwards, according to factory agencies.
Last week the two ICM plants raised their official lamb quote by 10c/kg, this week it is the turn of Kepak Athleague to grab the mantle as being the most positive mover in the lamb price league.
Kepak’s official quote yesterday morning of €4.70/kg plus quality assured bonus of 5c/kg is a full 15c/kg ahead of where their official quote was last week, and technically 5c/ kg ahead of their nearest opposition Kildare Chilling who at €4.65/kg are themselves up 10c/kg week on week.
However as Kildare pay a 10c/kg bonus as opposed to Kepak’s 5c/kg you can argue the top of the leader board is tied all in at €4.75/kg.
The fundamental message is that prices for the moment appear to have broken out from their recent malaise around €4.50/kg.
The two ICM’s and Dawn Ballyhaunis are also on the march, although their pace is more reserved as all three move cautiously up by 5c/kg this week to sit on a base of €4.55/ kg with the ICM edging it over Dawn with their 10c/kg bonus as opposed to Dawn’s 5c/kg.
Slipping in above all three however are Moyvalley Meats with their all in price of €4.70/ kg. While lamb prices have “responded” to reducing numbers, ewe numbers continue to remain strong resulting in all factory ewe base prices remaining unchanged at €2.40/ kg, plus bonus for some, for the umpteenth week.
The issue though is whether this current spate of price rises will continue or as happened in the past reach a plateau as lamb numbers increase to match those better prices. Still we cannot be too pessimistic because as November last year got under way official lamb quotes were as low as €4.30-4.40/kg. So despite over 10pc more sheep going through the factories this year to date, when compared with 2016, prices today are upwards of 30-40c/kg better.
On the ground ICSA’s John Brooks reports that factories are trying to stick to a base of €4.80/kg but paid €4.85/kg over the weekend.
IFA’s John Lynskey reckons €4.90/kg is possible but that in the medium term specialised feeders are holding out for €5.00/kg. In relation to weight limits the IFA tells me that some factories have moved up to 23kg, while others are incorporating increased weight limits to 23kg in deals.
The Irish trade is being helped by a firming of the UK trade after a persistent slide in price. The latest AHDB sheep meat outlook for the UK has indicated that net production is expected to increase 5pc this year compared to 2016 levels.