Factories turn up the heat on lamb prices

WHILE sheep prices are not exactly melting like an unguarded ice cream in the sun, yesterday morning saw factories again turn up the heat on prices.

This left the general run of lamb prices at between €5.405.70/kg on our price table. That means that factories have pulled prices by 10-20c/kg for the second week in a row. This week’s factory quotes for lamb are now up to 30c/kg below factory quotes from this time last year.

On the other side of the equation, ewe quotes are 40-50c/ kg above those from this time last year.

Moyvalley are at the top of the tree for lamb with their quote of €5.70/kg, but this is 10c/kg below their offering from last week. Also 10c/kg back on last week’s price is second placed Kildare Chilling on €5.60+10c/kg quality assurance.

Tied on €5.50/kg are the two ICMs and Kepak Athleague, with the bonus payment by the ICM group of 10c/kg giving them that little edge on our table over Kepak.

However, while the two ICMs are less this week by 10c/kg for lamb, Kepak have dropped 20c/ kg. Dawn Ballyhaunis also drop their lamb price by 20c/kg and come in at €5.40/kg. Dawn does, however, reintroduce a bonus payment which this week runs to 10c/kg for qualifying stock.

Ewes continue to appear to be the meat in the sandwich between what farmers believe lambs should be making and what factories are willing to pay.

Given the choice, factories are willing to up their ewe quotes when it suits to keep their numbers coming and enable the killing floor to stay running at a far less cost than an equivalent amount of lamb would.

And that is exactly what the largest sheep processing group in the country did yesterday. ICM raised their quote for cull ewes from last week’s €2.80/kg to €2.90/kg just as they dropped their lamb quote by that same 10c/kg.

Bargaining

Kildare Chilling continue to lead the table on cull ewe prices with their €3.00/kg plus 10c/kg bonus, a price they have held for three weeks. Coming in second are Kepak on a straight €3.00/ kg, they are followed by the ICM group with Dawn continuing to hold steady on €2.90/kg.

Commenting on the trade, IFA national sheep chairman Sean Dennehy said lamb supplies remain tight at the factories and farmers should not let lambs go without bargaining hard on the price. He noted factories are paying €5.80/kg but quoting less.

Farmers should insist on a price well above the original quote and also demand that weights are increased to a minimum of 21.5kg, added Mr Dennehy.