Hints of price rises around the corner
Quotes from the factories remained unchanged yet again yesterday, with lamb base prices continuing on €4.90-5.10/kg plus various bonuses.
It’s also as you were on the cull ewe front, with €2.50/ kg the universal quote, and Kildare adding their 10c/kg quality bonus.
How are numbers developing? While the factories, probably accurately, say they are getting enough, the reality is that while marts continue to see high entries the peak seems to have passed.
IFA sheep chairman Sean Dennehy points out that imports into the EU from New Zealand are back from 2019 levels.
“The Chinese market is sucking in a lot of sheep from New Zealand and we’re seeing imports to the EU back 17pc on 2019,” he said, adding that in 2019 New Zealand was only able to fill around 50pc of its allocated quota.
Sean reported yesterday that lambs are moving in the €5.35-5.40/kg range, with cull ewes making €2.60-2.80/kg.
However, the resurgence of the Covid virus is hitting the hospitality sector hard across the continent, as well as here: Belgium yesterday directed all bars and restaurants be closed for one month.
We have been here before. Back in the spring it took a while for the market to adjust but adjust it did, with the fall-off from the hospitality sector offset by increased supermarket sales.
Jump
Sean McNamara of ICSA predicts that prices could yet jump.
“The job is going well especially as factories are now paying up to 22kg.”
What about supplies? “The lambs are not there.”
North of the border, processors are paying the equivalent of €4.84/kg up to 21kg. This is up 6-11c/kg on the previous week.
Overall, therefore, the trade continues to move along very nicely, but with weather now turning a little sour, choices may have to be made as regards what to put in and what to sell.
But in the farming business as in any business it’s always a question of reading the market and planning accordingly. Judging by the strength of the store lamb trade, most believe sheep will continue to give a return long term.
The Chinese market is sucking in a lot of sheep from New Zealand and we’re seeing imports to the EU back 17pc on 2019