€5/kg lamb price is finally within reach

“NOW we’re sucking diesel,” said a local farmer over the weekend when I told him that I expected factory lamb to be €5/kg come Monday.

Both Sean McNamara of ICSA and Sean Dennehy of the IFA yesterday confirmed that €5/kg figure.

Mr McNamara said prices in real terms are now averaging €4.90-5.10/kg for lamb, with that higher price including bonuses.

The biggest movers on quotes yesterday were Kepak Athleague, who added 15c/kg to last week’s price, bringing them to a base of €4.75/ kg, plus a 15c/kg quality assurance (QA) bonus. That lift doesn’t gain them top spot on our table: that honour continues to be held by Kildare Chilling who add 10c/ kg to €4.80+10c/kg.

Dawn Ballyhaunis and the two ICM plants also added 10c/kg for lamb yesterday, all moving to €4.70+10c/kg.

Quotes for cull ewes remained static, with factories obviously viewing the increases on price granted over the last few weeks as adequate to keep their supplies coming.

Word from the factories is that demand has improved in the run-up to Christmas.

However, I’m told they are watching supplies very closely as they try to gauge what actual numbers are in the pipeline in the shorterterm.

One factory man told me very simply yesterday: “Yes we’re paying more but we’ll wait and see how it pans out”

Another factory officer pointed out that while they are now paying more than three weeks ago there are issues in relation to quality in the background.

“There are a lot of fat lambs coming through and they are being discounted. It’s no addition to us to be doing that — we would much prefer if farmers would draw their lambs sooner and get the better price.”

All of this positivity continues to feed back into the mart trade. Prices in Raphoe, Donegal and

Kilkenny yesterday were €2-4/hd stronger for lamb.

For many in the sheep trade it’s all about the here and now but several auctioneers I spoke with were looking longer-term into next year.

Neilus McAuliffe of Dingle Mart reported a continuing improvement in his sheep trade last week and reckons “there’s a bit of a twist left in the trade” and should factory prices maintain “those who bought stores early could see a tidy return after Christmas”.

With the lamb kill to the start of this month at 1.97m and running just behind last year’s figure for the first ten months of 2.09m, a further tightening in supplies would be welcome for those investing now with a view to trading early in the new year.

Another factor that will help maintain or increase prices will be a fall in imports from the North.

Word from the factories is that demand has improved

STANDOUT SALE €111/hd

Was paid for 52kg lambs in Dowra

STANDOUT SALE €116/hd

Was paid for butchers’ lambs in Kilkenny