Price cuts in Northern factories raise concerns
With so many empty spaces on our price table you could be forgiven for thinking that the sheep world had collapsed following the closure of Kildare Chilling last week.
However, at €4.80/kg+10c/ kg QA the two ICM plants have reduced their quote by just 10c/kg, while Dawn Ballyhaunis, who were absent last week, return with an offer of €5.00+10c/kg QA.
I’m not saying there’s anything wonderful about the ICM price, but some of those I spoke to with sheep to sell had feared worse.
What is of concern, though, is that prices in the North slipped 18-24c/kg yesterday to average €4.82-4.87/kg.
Last week I asked how Southern factories could afford to bring lambs from the North when factory prices there were matching those here at €5.00-5.11/kg. Now I have my answer: they ain’t €5/kg no more.
The IFA and ICSA have warned factories not to attempt to take advantage of the Covid-related closure of the plant in Kildare, but are they willing to mount an operation to track any Northern hauliers bringing lamb South?
Kepak Athleague were unable to furnish a quote for either lambs or cull ewes, while Dawn offered no quote for culls. So all I can offer on culls is an unchanged quote of €2.60/kg from ICM.
Sean Dennehy of the IFA claims that actual prices for
These 12 lambs weighing 43.7kg sold for €97.50 a head at Loughrea last Thursday; (above): these seven lambs weighing 44.7kg changed hands for €100 apiece. culls are running at €2.602.80/kg.
Aside from all this, I was heartened by one factory representative’s response when asked how he saw retail demand: “There’s not a bad want out there,” he told me.
However, Sean McNamara of ICSA was critical of prices, pointing out that at €4.80/ kg your 21kg lamb comes into just €100.80/hd before any add-ons, compared to the €121.50/hd a 45kg cull ewe would return at €2.70/kg.
Steady
Sean Dennehy said of lamb prices: “The trade remains steady with €5.00-5.10/kg being offered for the first few days of this week.”
He added that numbers “seem to be tight” due to farmers having moved a higher number of stock in the run up to the Eid festival.
Also of interest is his claim that in the run-up to Eid, a higher number of lighter lambs went through the system, meaning that there could be a deficit of properly fit lambs at some point.
Trade at marts over the last week has seen prices for lambs fall back as factory demand has slackened following Eid, while numbers continue very strong.
However, on the store side farmer demand continues to keep prices well maintained, with your better-type store frequently operating from €75-90/hd and occasionally more.
Breeding sales are now starting to take off, with Mountbellew reporting ewe hoggets as making €175-211/ hd, although plainer types were a harder sale.
In Enniscorthy Kevin Murphy said a good share of ewe lambs were being bought by men who intend to let them lie on to be sold next year as dry hoggets.