Price creeping upwards as factories ‘have tongues out’ for lamb ahead of Ramadan
The first thing to notice this week is that the factory price table below is more or less complete.
After almost a month away Dawn Ballyhaunis are back with a full complement of quotes, while Kepak Athleague, who have also been on the missing list for some time, offer quotes for springs and culls.
The ICM plants lift their quote for springs by 10c/kg to €6.00/kg plus 10c/kg QA, in line with Dawn. Kepak also resume on €6.00/kg, with a 15c/kg quality bonus.
Kildare Chilling are unchanged at the head of the pack on €6.10 + 10c/kg QA.
Kildare also remain the best payers for hogget, on €5.40+10c/kg, and for culls still on €2.70/kg plus bonuses
The ICM plants raised their offer for culls by 10c to €2.50/ kg.
At the start of this month some on the factory side were predicting a difficult time in the run-up to the end of Ramadan on May 28.
We were told one week that Covid restrictions could impact family reunions, while the following week the story being circulated was that “a flood” of British sheepmeat was endangering the whole French market.
Whether true or not Irish sheep prices have held fairly steady.
Indeed, mart prices have strengthened of late as factory buyers tussle to get adequate supplies.
Stephen Hannon of Mohill in Leitrim averaged springs at €2.90/kg last week but told me he expects that price to harden further this week.
IFA sheep chairman Sean Dennehy concurred: “Factories are actively looking for lamb to fill retail orders and are paying from €6.206.30/kg,” he said.
Sean McNamara of ICSA was a bit more colourful, saying: “Factories have their tongues out for lamb.”
He’s also a bit stronger on where he thinks the price will be at as we go forward: “I expect €6.40 to be paid with €6.50 possible,” he said.
With supplies of hoggets easing back, their on-theground price remains around the €5.60/kg mark, with some quality lots reported to be averaging €5.70/kg.
While demand from the factories for cull ewes appears to a bit lethargic, the wholesale market continues to keep some sort of floor under the price at the marts.
North of the border lamb prices continue to strengthen with this week’s factory price expected to range from €5.615.73/kg up from a base of €5.40/kg two weeks ago.
Bord Bia’s latest market report ending May 9 shows what many in the sheep sector accept: that Irish factory prices are performing well.
Dead weight
The dead-weight Irish factory price for lambs was ahead of anything on offer in the UK or Spain at €5.54/kg.
Although the Covid crisis has affected the French market, lamb there continues to much sought-after: it continues to float around the €6.50/kg mark.
The short-term outlook remains positive, although after May 28, I suspect we will have to once again wade through the fact and fiction section to get market returns from the factories.
‘Factories are actively looking for lamb to fill retail orders and are paying from €6.20-6.30/kg’
This pen of lambs weighing 44.7kg sold for €128/hd at Loughrea