Quotes rise but fears grow over sector’s reliance on imports

Anumber of weeks ago the ICSA’s Sean McNamara put out a press statement critical of sheep imports from Northern Ireland undermining factory prices here in the South.

Looking into the claim, the Farming Independent contacted various agencies on either side of the border seeking figures.

It has to be pointed out that there is nothing illegal about importing sheep that originate within the EU once all veterinary and traceability rules are followed.

What I found interesting was how the figures on imports broke down when I compared the data I received from the North’s Livestock and Meat Commission with the figures supplied by our Department of Agriculture.

The Department quoted data from the EU’s Trade Control and Expert System (TRACES) which gave the total number of sheep imported into the Republic as 521,798 in 2018, 461,522 in 2019 and to April 1 this year, 108,853.

The Livestock and Meat Commission data, however, shows that in 2018 of those 521,798 sheep imported, only 421,365 originated from flocks in Northern Ireland.

In 2019 the figure was 380,431, and up to April 4, 2020, 94,899 sheep originated from flocks north of the border.

These figures show a serious dependence by southern sheep processors on imports.

These figures also raise questions about how this trade might operate in a postBrexit situation.

And do the Department know where all these imports ended up?

In the here and now the sheep trade appears to be seeing a revival in fortunes as factory quotes for lambs rose yesterday by 10-15c/kg.

The biggest increase comes from Kepak Athleague, who added 15c/kg, bringing it up to €5.35+15c/kg quality assurance.

Kildare Chilling go up 10c/ kg to €5.40+10c/kg QA. Dawn Ballyhaunis and the two ICMs also add 10c/kg, reaching €5.30+10c/kg QA.

The ICM plants and Kildare continue to quote €4.40+10c/ kg QA for hogget.

On the cull ewe side all quotes remain unchanged, with Kildare continuing to offer €2.60+10c/kg, while all the rest remain on a straight €2.50/kg.

Both the ICSA and the IFA report stronger prices being offered, with the IFA’s Sean Dennehy claiming that as the trade has strengthened, “factories are paying 30c to 440+10QA 530+10QA 35c/kg over quoted prices to get stock, with €5.60-5.65/kg paid”.

On the cull ewe front he claims up to €2.80/kg has been offered.

Sean McNamara agreed that up to €5.65/kg was possible for lamb but explained that you have to “build that price with bonuses off a base of probably of €5.40/kg”.

Trade in marts has also seen an improvement with very strong demand for stores from farmers pushing prices forward by €5-10/hd in places, with 30kg lambs making upwards of €85/hd.

The trade for factory type lambs at marts also moved very positively as factories upped the ante to the point where the mart road appears a real option when compared to direct selling.

For those in the sheep game the weather this year has been a huge help, with Nelius McAuliffe in Dingle crediting it for the thrive he has seen in lambs.

“The early sunshine suited them,” he said.

Sunshine all round at present it seems.

These figures raise questions about how this trade might operate in a postBrexit situation